Robe Mesa to cost A$51m - CZR
PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Robe Mesa iron-ore project, in the Pilbara, has estimated that the project would require a capital investment of A$51.1-million.
ASX-listed CZR Resources noted that the study targeted a production rate of two-million tonnes a year of direct shipping ore (DSO) product, with the study estimating a mine life of more than five years.
The study is based on a maiden Joint Ore Reserves Committee-compliant probable ore reserve of 8.2-million tonnes, grading 56% iron.
The C1 cash cost for the project has been estimated at A$64.78/t, with life-of-mine cash flows projected at A$622-million, using an iron-ore price of $145/t.
“The PFS shows Robe Mesa is well on track to becoming a significant Pilbara iron-ore producer with strong financial returns based on low cost and its close proximity to existing infrastructure,” said CZR MD Rob Ramsay.
“With the estimated capital cost of only A$51-million and a pay-back period of 19 months, the project has excellent potential to create substantial value for CZR shareholders.”
CZR on Thursday said there were significant upside opportunities for the Robe Mesa project, including the potential to reduce haulage costs by using a closer port between Onslow and Dampier, increasing the production rate to three-million tonnes a year to fully utilize the processing plant and mining fleet, reducing capital cost through more detailed investigation regarding access road and intersection works, and additional exploration opportunities that can be drill tested.
“We will now move quickly to begin a definitive feasibility study while looking for opportunities to further improve the financial returns,” said Ramsay.
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