Name of the Project
Paulsens East iron-ore project.

Location
In the Pilbara, Western Australia.

Project Owner/s
Strike Resources.

Project Description
Paulsens East comprises a 3-km-long outcropping high-grade hematite ridge containing a Joint Ore Reserves Committee- (Jorc-) compliant indicated mineral resource of 9.6-million tonnes at 61.1% iron, 6% silicon dioxide, 3.6% aluminium oxide and 0.08% phosphorous (at a cutoff grade of 58% iron). The project has Jorc-compliant mineral reserves of 6.2-million tonnes grading 59.9% iron, 7.43% silicon oxide, 3.77% aluminium oxide and 0.086% phosphorous.

Strike proposes to adopt a phased approach to the start of mining at Paulsens East.

Stage 1 production will focus on surface detrital and low strip-ratio material of up to

400 000 t, to be shipped during 2022 through Utah Point at Port Hedland.

Stage 2 production is proposed at an annualised rate of 1.5-million to two-million tonnes a year, transitioning from Utah Point to the Port of Ashburton, in Onslow, which will reduce the trucking distance by 365 km. Ramp-up of this stage is expected to be substantially self-funded from Stage 1.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of A$140-million and an internal rate of return of 213%.

Capital Expenditure
Initial capital expenditure for Stage 1 is estimated at A$5-million, with the remainder of the project expected to be funded from project cash flows. Total capital over the life-of-mine is estimated at A$15-million, inclusive of the A$5-million required in Stage 1.

Planned Start/End Date
First ore production is planned for late 2021 or early 2022, subject to a final investment decision.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Engenium (study management); Harry Warries, MSc – mine engineering, FAusIMM, – Mining Focus Consultants (mining schedule and Jorc probable ore reserve); Phillip Jones – BAppSc (Geol), MAIG, MAusIMM (Jorc mineral resources consultant); Engenium and Strike (capital and operating costs); Strike (logistics); Ecologia Environmental Consultants (environmental studies); Mark Hancock  – Haven Resources (marketing); and Strike (economic modelling).

Contact Details for Project Information
Strike Resources, tel +61 8 9214 9700 or email info@strikeresources.com.au.