Limpopo iron-ore study by end of 2013 – Ferrum
Iron-ore developer Ferrum Crescent expects to complete a bank- able feasibility study of its Moonlight iron-ore project in South Africa’s Limpopo province by the end of 2013.
The ASX-, AIM- and JSE-listed company, headed by executive chair- person Ed Nealon – who created Aquarius Platinum – expects to develop a low-cost magnetite ore project that yields a low-contaminant, 69.7%-iron pellet.
Moonlight’s compliant reserve of 307.8-million tons of magnetite ore is likely to be exploited as a contract-mined, openpit operation with on-site concentrate production.
A 100 km to 220 km slurry pipeline to a rail-served pelletising plant at either Lephalale or Thabazimbi is envisaged, with return water capability.
The six-million-tons-a year plant is expected be able to produce 68.5%-iron pellets for international and domestic markets.
An offtake agreement for initial production has been signed with Duferco, which has a steel processing facility at Saldanha, in the Western Cape.
Ferrum’s output is expected to be a mix of direct-reduction-iron-grade and blast-furnace-grade pellets.
“Securing our mining licences over all areas of Moonlight was a significant milestone achieved during 2012,” said Nealon in a Stock Exchange News Service announcement.
Transport arrangements with South African State-owned rail company Transnet are being negotiated.
Because Moonlight’s magnetite grain size is coarser than in comparable deposits worldwide, production of a commercial concentrate will cost less and require less energy, Ferrum says on its website.
Ferrum’s De Loskop prospect, 150 km east of Moonlight and 50 km north of Polokwane, will be explored in greater detail in the near future.
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