Mt Gibson to develop Iron Hill

Perth-based miner Mount Gibson Iron has started development of its Iron Hill mine in the Mid West after receiving final approvals, and hopes to begin producing by as early as May.

Mt Gibson said it expected to sell up to 6 million wet metric tonnes of iron ore from the mine from the commencement of production up to a forecast completion date of late 2018.

Life-of-mine cash costs are expected to come at between $46-$48/wmt.

The mine lies 3 kilometres south of Mt Gibson’s recently depleted Extension Hill pit, meaning all existing infrastructure and personnel – including 160 employees and contractors – will be utilised for Iron Hill.

“We are very pleased to gain the final approvals required for Iron Hill, which are the successful culmination of a huge effort by our permitting team since the initial application was made over two years ago,” chief executive Jim Beyer said.

“We now look forward to rapidly developing this attractive high value, low-capital production opportunity, thereby extending the life of our mid-west business.”

Mt Gibson has offtake agreements for 70 per cent of the first year of planned production at the mine.

The miner has also increased its ore sales guidance to between 3.2 million and 3.5 million wmt for the 2017 financial year, at a reduced all-in group cash cost of between $47-$51/wmt.

Mt Gibson shares closed 0.5 per cent higher to 36.2 cents each.