PERTH (miningweekly.com) – Development work at the Iron Hill mine, in Western Australia, has started, after miner Mount Gibson Iron secured the final statutory approvals for the process.
“We are very pleased to gain the final approvals required for Iron Hill, which is the successful culmination of a huge effort by our permitting team since the initial application was made two years ago,” Mount Gibson CEO Jim Beyer said on Thursday.
“Obtaining these approvals, in a large part, reflects our proven record of, and ongoing commitment to, responsible resources development in the state’s Mid-West and Kimberley regions.”
The Iron Hill mine is located some 3 km from the now-depleted Extension Hill operation and will only require between A$2-million and A$3-million to develop, as it will use the company’s existing mine facilities and logistics arrangements.
Based on the current development schedule, Mount Gibson expects the project to contribute 400 000 t to 500 000 t of ore to product sales for 2016/17, with total life-of-mine product sales expected to be between 5.5-million and 6-million tonnes through to late 2018, when production will likely be completed.
First ore sales from Iron Hill have been targeted for May.
Some 70% of the first year’s production from Iron Hill has been secured under an offtake agreement.
“We now look forward to rapidly developing this attractive, high-value, low-capital production opportunity, thereby extending the life of our Mid-West business,” said Beyer.