08/09/2020 - 15:00

Coziron to begin pre-feasibility on Pilbara project

08/09/2020 - 15:00

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David Flanagan-chaired Coziron Resources has joined several WA stocks looking to develop their iron ore projects.

Coziron to begin pre-feasibility on Pilbara project
The proposed Robe Mesa operation will use existing road trains to haul ore to Port Hedland. Photo: ebr1 (Flickr)

David Flanagan-chaired Coziron Resources has joined several Western Australian stocks looking to develop their iron ore projects, after announcing it will begin a pre-feasibility study on its Robe Mesa deposit.

It follows completion of a strategic review of the company’s iron ore assets, which Coziron launched in June.

Its assets include the Croydon and Yarraloola iron ore projects in the Pilbara.

Coziron told the market today it would soon begin pre-feasibility study works on its 84.5 million-tonne Robe Mesa deposit, which forms part of the company’s 85 per cent-owned Yarraloola project.

Yaraloola is located 150 kilometres southwest of Karratha, adjacent to the Rio Tinto-owned township of Pannawonica, which services Rio’s Mesa A and Mesa J iron ore mines.

The PFS will assess a direct shipping ore (DSO) mining operation of between 1.5mt and 2.5mt per annum, using road trains to haul ore around 400 killometres to the public ship-loading facilities at Port Hedland.

Coziron said there was a range of other port options likely to become available between Onslow and Dampier over the next few years – all within a 100 kilometre radius of the Robe Mesa deposit.

The company said it would consider forming a joint venture to develop the project, or making a full or partial sale.

The PFS, which will also target a maiden ore reserve, is expected to be completed by the end of the calendar year.

It is being led by former Atlas Iron operations chief executive Jeremy Sinclair. He will assist Mr Flanagan, who was the Atlas founding managing director.

Shares in Coziron were up 11 per cent at 3:19pm AEST to trade at 2 cents each.

Fellow WA-based explorer Fenix Resources is also seeking to develop its DSO mining operation in the Pilbara, with the company having raised $15 million last month to cover capital costs associated with its low-cost, high-grade Iron Ridge asset.

Fenix has estimated capital costs to be around $11.4 million.

It says Iron Ridge, which holds a net present value of $54.3 million, will generate significant cash flow and financial returns.

Fenix has forecast production of 1.25mtpa at a cost of around $76.86 per dry metric tonne, with first ore shipping targeted for next year.

Meanwhile, private company Australian Aboriginal Mining Corporation is looking to become the first Indigenous-owned iron ore producer, developing the First Iron project (formerly known as Wonmunna) in the Pilbara.

AAMC last year received a $12.5 million loan from the Northern Australia Infrastructure Facility to develop the project – NAIF's first loan for any Australian iron ore project.

Strike Resources and Grange Resources are also seeking to monetise their iron ore projects in WA – called the Paulsens East iron ore project and Southdown Magnetite deposit, respectively.

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