CZR Resources is a step closer to production at its Robe Mesa iron ore project after receiving mining approval from the Department of Mines, Industry Regulation and Safety for two of the site’s key deposits.
The approval has been granted for the company’s Robe Mesa and P529 deposits that respectively sit north and south of Rio Tinto’s Mesa F project around 120km from Karratha in the Pilbara region of WA.
Just last month CZR increased the mineral resource at its Robe Mesa project by 20 per cent to 45.2 million tonnes in addition to expanding its P529 deposit after picking up a nearby tenement from global mining giant Fortescue Metals Group.
The company also holds the title to its Robe South deposit that sits between the new acquisition and Rio’s Mesa deposit. Robe South contains 4.2 million tonnes at 53 per cent iron ore with a cut-off grade of 50 per cent.
CZR says a higher-grade zone of the Robe South deposit extends into the newly acquired tenement and increases the area’s strike length to around 1.1km. The zone has the potential to develop into a satellite deposit that can feed the company’s Robe Mesa processing plant.
CZR Resources Managing Director, Stefan Murphy said: “The granting of Mining Licences covering the Robe Mesa deposit, following a collaborative agreement with the Robe River Kuruma Traditional Owners, has been a goal of CZR for many years and further de-risks our project, adding value to the Robe Mesa asset.”
The recently granted mining licences are held by CZR through its wholly owned subsidiary Zanthus Resources that has an 85 per cent interest in Robe Mesa and joint venture partner Zanf that holds the remaining 15 per cent. The licences have been granted for a term of 21 years and follows an agreement with the Robe River Kuruma Aboriginal Corporation that provides economic and social benefits to the traditional owners and consent for mining.
CZR says it is now updating its mine plan and production schedule for Robe Mesa that is targeting 3.5 million tonnes per annum to align with the company’s proposed export capacity through the Port of Ashburton.
Late last year CZR, Strike Resources and CSL Australia entered into a memorandum of understanding to form a consortium to secure approvals to build a 5Mtpa iron ore and bulk material facility at the port capable of taking ore via road train to transhipment vessels.
The company says it will begin field work next week that will include resource definition drilling at the P529 deposit and the recently acquired tenement from FMG. CZR will also begin bore drilling to confirm water supply for mining operations at the Robe Mesa project.
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