CZR grows iron ore resource by more than 50 per cent

CZR Resources has increased the mineral resource at its Robe Mesa iron ore project in the Pilbara by more than 50 per cent whilst maintaining an iron ore grade of 56 per cent.

The updated figure reflects strong assay results reported in March that revealed extensive direct shipping iron ore outside the prefeasibility, or “PFS” study pit designs.

In February the company received assays from the first 55 holes of a drill campaign that indicated the potential for an upgrade to direct shipping iron ore resources.

The deposit’s JORC mineral resource has now increased from 24.7 million tonnes to 37.5Mt — a rise of 52 per cent.

The increased resource is in line with the company’s aim to grow its production target from 2 million tonnes per annum to 3Mtpa in its definitive feasibility study.

The Robe Mesa deposit forms part of CZR’s Yarraloola iron ore project, 120km south-west of Karratha.

CZR Resources Managing Director, Stefan Murphy said: “Our objective at Robe Mesa is to grow the production rate to 3Mtpa and increase mine life. This in turn is aimed at increasing free cashflow generation and overall financial returns. These results will feed into the mine planning and design work now underway. At the same time, we are updating our cost model through the DFS, targeting lower transport costs from export locations closer to the Robe Mesa deposit than were considered in the PFS.”

The assays were predominantly from drilling in the southern half of the deposit, where the PFS accounted for a series of small, shallow pits.

The mineralisation is now shown to be continuous between the zones with the potential to develop a larger operation.

The Robe Mesa project is a joint venture where CZR holds 85 per cent whilst 15 per cent is independently held by ZanF.

The mineral resource estimate has been classified based on confidence in the geological and grade continuity, geological modelling and the quality of survey control.

After recent heavy rainfall in the region, diamond and RC drilling activities are due to resume at the site in the next two weeks.

The deposit sits within the prolific Robe Valley, that also hosts the Robe River joint venture – between Rio Tinto, Mitsui & Co and Nippon Steel – that has been mining the channel iron deposits since the 1970s.

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