Venture Signs MOU with Grange Resources
THE BOURSE WHISPERER: Tasmania-focused Australian mineral exploration company Venture Minerals has inked a Memorandum of Understanding (MOU) with Grange Resources.
Under the MOU, the two companies will investigate the potential for Grange to act as a downstream partner for Venture in value-adding to the proposed magnetite production from the Mount Lindsay Project.
Magnetite will be a by-product of mining from Venture’s Mount Lindsay tin-tungsten deposit in northwest Tasmania.
According to a recently completed Pre-Feasibility Study by Venture, Mount Lindsay will produce more than 200,000 tonnes of magnetite concentrate per annum.
The company has identified an opportunity for this magnetite concentrate to be converted to iron ore pellets and distributed directly to end users by utilising Grange’s existing pellet plant and ship-loading facilities at Port Latta, located on the north coast of Tasmania.
Grange currently exports approximately two million tonnes per annum of iron ore pellets from its wholly owned Savage River mine situated some 25 kilometres from Mount Lindsay.
Venture is currently completing a Bankable Feasibility Study on Mt Lindsay, which in addition to tin and tungsten production includes detailed information on the production of magnetite fines.
Following completion of this study, Venture will submit the report to Grange along with a proposal for joint development activities between the parties.
“A joint development with Grange would provide synergistic benefits to both parties and allow Venture access to Grange’s long-established infrastructure,” Venture Minerals managing director Hamish Halliday said in the company’s announcement to the Australian Securities Exchange.
“We are excited to have the opportunity to explore a range of development options with Grange, who have been successfully mining, manufacturing and exporting iron ore pellets from Tasmania for several decades.”
As well as signing the MOU with Grange, Venture has also progressed off-take discussions on its Livingstone Direct Shipping Ore hematite deposit, following interest from a number of parties.