Magnum shares surge on iron deal

Perth-based Magnum Mining & Exploration has picked up an advanced-stage magnetite project in the US, sending its shares up by more than 40 per cent.

Magnum will pay up to $7 million for the high-grade Buena Vista project in Nevada, which has a grade of more than 67.5 per cent iron magnetite concentrate “with no deleterious impurities”.

Companies have spent more than $34 million on exploring the project over the past decade, Magnum says.

Major exploration programs were completed by Columbia Iron Mining Company, from 1960, Richmond Mining (2010) and Nevada Iron (2012).

Magnum said the project had also secured all major permits for long-term production of magnetite concentrate.

The company is planning to update the previous feasibility studies for the project’s capital and operating expenditure estimates, as well as explore funding options available to move Buena Vista to pre-production status.

“It is a huge positive for Magnum that all of the key technical work required for the feasibility study update has already been completed,” Magnum said.

“In addition, Buena Vista also provides a very favourable ore characteristic given its intrusive origin.”

Magnum said the project was much coarser grained, as well as softer than typical banded iron hosted magnetite deposits.

The company has begun its 60-day due diligence on the project.

Its shares closed up 31 per cent to trade at 5.5 cents.