CZR winds up iron ore drilling ahead of reserve update

CZR Resources has wrapped up an infill drilling campaign designed to grow the reserves and boost anticipated production from 2 million tonnes to 3mt per annum at its Robe Mesa iron ore deposit in Western Australia. The updated reserve estimate will feed into an ongoing definitive feasibility study, or “DFS”, that will benefit from the infill drilling campaign consisting of 164 RC holes for 7,803 metres within the resource envelope.

To-date CZR has defined an 89.1 million tonne resource grading 53.7 per cent iron from two sub-horizontal zones of mineralisation at Robe Mesa, known as “pisolites”. After calcination, a form of processing, the resource grade is expected to lift to 60.2 per cent iron.

Ore reserves at the project clock in at 8.2mt going 56 per cent iron, rising to 62.7 per cent after calcination.

The drilling targeted both the upper and lower mineralised zones at the project and was aimed at generating data for CZR to establish a detailed grade distribution model to evaluate the potential of larger pit designs with increased production rates and a longer mine life.

Assessments from the drilling are due in the first quarter of next year, with an updated resource and reserve estimate for Robe Mesa projected for release in the June quarter of 2022.

CZR has already run the rule over Robe Mesa in the form of a pre-feasibility study, or “PFS”, that envisaged 2mtpa iron ore production for five-and-a-half years.

According to the PFS, the pre-production capital cost of developing Robe Mesa came in at $51.1 million with a capital payback period of 19 months.

The company believes there is significant scope to enhance the project economics and it is focused on expanding the PFS pit designs to grow the mine life and increase production rates to potentially 3mtpa.

According to CZR, a larger mining footprint will allow for new pit designs to extend deeper into the lower pisolite that were not included in the PFS estimates. The company believes the lower pisolite provides the best opportunity to grow the mining inventory at the deposit.

CZR Resources Managing Director, Stefan Murphy said:“This is a key part of our strategy to grow Robe Mesa by expanding the current pit designs and accessing the lower pisolite.

Once assay results are received early in the new year, we will focus on optimising our pit designs and iron ore product mix, which will in turn feed into the DFS.”

Release of the DFS for Robe Mesa is envisaged for the third quarter next year.

With the Robe Mesa project gathering steam, CZR could be set for a big 2022. Should the results from the latest campaign match the company’s expectations, it would be another step down the road towards becoming the Pilbara’s next iron ore miner.

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