11/03/2021 - 11:00

CZR progresses Pilbara iron ore project

11/03/2021 - 11:00

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CZR Resources is advancing its $51 million iron ore development south-west of Karratha, with environmental studies now underway.

CZR progresses Pilbara iron ore project
CZR is progressing environmental studies for its Robe Mesa iron ore deposit in the Pilbara. Photo: CZR Resources

CZR Resources is advancing its $51 million iron ore development south-west of Karratha, with environmental studies now underway.

Its 8.2-million-tonne Robe Mesa deposit has a grading of 56 per cent iron and forms part of CZR’s (formerly Coziron Resources) 85 per cent-owned Yaraloola project.

A pre-feasibility study completed in December last year forecast Robe Mesa as a five-year, direct shipping ore (DSO) operation expected to produce at a rate of 2 million dry metric tonnes per annum.

Average operating costs were estimated to be about $65 per dmt while the project is expected to generate $96.4 million in cashflow.

Today, CZR said it had begun key studies on Robe Mesa that would pave the way for environmental and mining approvals, which will form part of a definitive feasibility study.

CZR is preparing to finalise the DFS budget and timetable while examining opportunities to reduce both capital and operating costs of the project, including possible changes to transport routes and intersection works. 

The company said it would consider using a closer port between Onslow and Dampier rather than hauling ore to Port Hedland.

Managing director Robert Ramsay said CZR was working to progress Robe Mesa as quickly as possible.

“CZR has an outstanding opportunity to develop an iron ore project in the world’s most desirable iron ore region with low costs and simple production methods,” he said.

“The strategy is aimed at unlocking the maximum value of the project at the earliest opportunity b y pursuing a range of desktop, field studies and other activities at the same time.”

Shares in CZR were up 9 per cent at 12:30pm AEDT to trade at 1.2 cents.

Fellow iron ore junior GWR Group recently completed its first shipment and delivery, after commencing production at its C4 deposit near Wiluna in early December.

C4 forms part of the larger 21.6mt Wiluna West project and is expected to deilver 1mtpa at an average grade of 60.7 per cent iron.

Meanwhile, Fenix Resources completed its first iron ore shipment last month.

The company recently announced its 7.76mt Iron Ridge mine, near Cue, had reached nameplate production levels of 1.2mtpa, with an average grade of 63.9 per cent iron.

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