Multi-commodity explorer CZR Resources has closed the book on a memorable 2022 after tabling several highlights in its December activities report including a monster 83 per cent increase in the tonnage of its Robe Mesa iron-ore deposit in the Pilbara region of WA. The asset now tips the scale at 45.2 million tonnes and retains its 56 per cent iron grade despite the massive inventory boost.
The increase was delivered through a host of drilling activity completed across the project’s northern extension and a thick mineralisation hit within the south of the Robe Mesa deposit, about 120km south of Karratha.
Robe Mesa sits in the shadows of Rio Tinto’s Mesa F iron-ore project and despite its relatively modest grade of 56 can reach market favourable heights of almost 63 per cent iron once processed. In contrast Rio’s Pilbara- blend, which the mining behemoth says is one of the most recognised brands of iron ore, pulls in a grade of around 62 per cent iron.
After posting the revised mineral resource in December last year CZR Managing Director Stefan Murphy suggested the scale of Robe Mesa was now at the point where it could begin to start unlocking economical efficiencies through greater economies of scale. The company is now looking to boost its 2 million tonne per annum production capacities by one million tonnes a year and extend the project’s mine life. CZR also plans to deliver an updated mine plan in March ahead of a definitive feasibility study.
The Robe Mesa iron-ore deposit could be set for plenty of news flow this year with the company tying down the rights to acquire a nearby tenement from Fortescue Metals Group subsidiary FMG Pilbara in December. The tenure sits a mere 5km from Robe Mesa and consolidates an over 1km long strike position of CZR’s iron-ore deposit. Drilling within the new ground position is earmarked for later this month.
CZR also carved a path to get its product to market over the quarter with the Perth-based company joining forces with fellow iron-ore player Strike Resources and global transhipping titan CSL to establish a new export facility in Onslow to help cut transport costs. The company argues the move would eliminate the need to truck ore 600km north to the closely held Port Hedland port.
Outside of its seemingly favoured commodity profile CZR also advanced its precious metal ambitions by working up a gravity survey at its Croydon gold project in WA’s Pilbara goldfields, lighting up a series of compelling anomalies in the process. The survey is now about 80 per cent complete and could be wrapped up early this year.
Plans are also being drawn up to drill test a suite of intrusion-related gold mineralisation at Croydon which the company says is analogous to De Grey Mining’s renowned and closely located 8.5 million ounce Hemi discovery.
The shortlist suggests the company could have its hands full this year and with iron ore coming off a 7 month high and currently trending at US$123 per tonne Robe Mesa could be gearing up for a significant dose of attention.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
