JOHANNESBURG (miningweekly.com) – Exploration firm Jindalee has acquired exploration licence EL5/2016 covering the Arthur River and Lyons River magnesite deposits, in Tasmania, which used to belong to coal miner Beacon Hill.
Jindalee stated on Monday that the area covered by EL5/2016 contained Australia’s third-largest inventory of magnesite, which featured on the European Union’s list of 20 critical materials.
Magnesite is the primary source of magnesia, which is mainly used in agriculture, mineral processing, paper manufacture and refractory industries. Magnesia is also used to produce magnesium, which is widely used in the aerospace and automotive industries.
A 2012 resource estimate completed by former owner Beacon Hill estimated inferred resources of 25-million tonnes at 42.4% magnesia for the southern part of the Arthur River deposit. No resources were estimated for the Lyons River deposit.
A Beacon Hill scoping study had investigated a 292 000 dry tonne a year operation, producing 100 000 t/y of caustic calcined magnesia with an average grade of 95% magnesia over a mine life of 17 years.
Jindalee stated that it would evaluate Beacon Hill’s scoping study in light of favourable exchange rate movements and lower mining industry input costs since May 2012.
“Jindalee has commenced accessing and compiling the extensive database for the project and looks forward to commencing work as soon as EL5/2016 has been granted,” the ASX-listed company said in a statement.
The leases covering the Arthur River and Lyons River deposits lapsed when Beacon Hill entered into administration in January last year.