Fenix Resources is aiming to recommence mining operations at its Shine Iron Ore Mine, with site works due to kick off before the end of this quarter.
The decision comes after the Board approved the recommencement at the company’s wholly owned mine. First iron ore production is targeted for the December 2024 quarter.
The approval to proceed with the Stage 1 mine plan for Shine follows a comprehensive review of all aspects of the project which included the completion of an in-pit drilling program, product sampling, a tender process for mining and processing operations and updated resource modelling.
Shine has a JORC compliant Mineral Resource Estimate of 15.1 million tonnes at an average grade of 58 per cent iron.
Pre-production capital expenditure is minimal given the availability of all required critical infrastructure. All required approvals and permits are in place. The approved capital expenditure budget for Stage 1 is $7.4 million and includes the upgrade of existing camp infrastructure, contractor mobilisation and the upgrade of the Shine access road.
Fenix will use the company’s 100 per cent-owned Newhaul logistics and port services functions to realise significant cost savings. The haulage distance from Shine to Geraldton is less than 300km compared to the approximate 500km from Geraldton to Iron Ridge. Haulage is expected to average 100,000t per month from commencement of production during the current and forthcoming financial years (FY25 and FY26).
Total C1 Cash Costs free on board (FOB) Geraldton are expected to be AUD$67.50 per wet metric tonne (wmt) equivalent to USD$45.50/wmt, resulting in robust cashflows and strong operating margins.
Stage 2 and Stage 3 mine plans will be assessed following further optimisation work, with significant opportunity for Fenix to extend mine life at Shine subject to future approvals
Fenix Resources’ Executive Chairman, John Welborn, said, “The restart of mining operations at Shine is an obvious opportunity to expand Fenix’s production and leverage our excellent Mid-West mining and transport logistics capabilities.
“Shine will be our second wholly owned producing asset in the Mid-West and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows, and profitability growth.
“Fenix is committed to unlocking value from the abundant valuable resources of the Mid-West and the obvious place to start is with the resources that we own and control.”
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