JOHANNESBURG (miningweekly.com) – Australian exploration company Venture Minerals on Tuesday said it had secured capital items and executed mining contracts for its Riley direct shipping ore (DSO) project in north-west Tasmania.
The company noted that the developments moved it closer to its goal of starting iron-ore production from the Riley project in the second half of the year.
The fully funded Riley DSO project had a life-of-mine cash cost estimate of A$47/t free on board.
The company recently ordered capital items totalling A$75 000 and that included various components required for the roughly one-million-ton-a-year crushing and screening plant, such as a crusher and screen feeder, as well as a high-rate thickener and log washer.
Following Venture’s recent appointment of Shaw Contracting as the preferred mining contractor, the company had finalised their engagement and executed the mining contract. The contract included supplying the plant, equipment, facilities services, labour and supervision required to mine, load and transport ore to run-of-mine stockpiles.
The scope of work also included the supply of crushing, washing and screening plant and services to deliver clean crushed ore.
The mining contract would start following the receipt of full project approvals and final notification from Venture to Shaw Contracting.
Despite challenging equity market conditions, Venture said it remained in a strong position, with the company currently holding a cash position of A$13.5-million and an undrawn debt facility of A$15-million.
Venture indicated that it would focus on finalising approvals, completing last remaining contracts and continuing to strengthen relationships with potential offtake partners in the immediate term.
In May, the company had received approval conditions from the Tasmanian Environment Protection Authority for the development of the Riley project.