CZR shares up on Robe Mesa update

CZR Resources has delivered a positive pre-feasibility study for its Robe Mesa iron ore deposit in the Pilbara, sending its shares up 15 per cent.

The PFS has confirmed a five-year, direct shipping ore (DSO) operation at Robe Mesa, which forms part of CZR’s 85 per cent-owned Yaraloola iron project.

Robe Mesa has a probable ore reserve of 8.2 million tonnes at a grading of 56 per cent iron.

CZR, formerly Coziron Resources, expects pre-production capital costs to be $51.1 million and average operating costs to be about $65 per dry metric tonne.

Robe Mesa is expected to generate $96.4 million in cashflow over the life of mine.

Managing director Robert Ramsay said the project had strong financial returns based on low costs, and was within close proximity to existing infrastructure.

“With an estimated capital cost of only $51 million and a payback period of 19 months, the project has excellent potential to create substantial value for CZR shareholders,” he said.

“We will now move quickly to begin a definitive feasibility study while looking for opportunities to further improve the financial returns.”

The DFS will be carried out alongside further drilling, aimed at upgrading the Robe Mesa resource.

CZR shares closed up 15 per cent to trade at 1.5 cents per share.