Fenix Resources’ (ASX:FEX) board has approved the restart of operations at its Shine Iron Ore Mine in Western Australia.
Site works are expected to begin this quarter, with the first iron ore production anticipated for the December quarter.
Following a comprehensive review of all aspects of the project – which includes completing an in-pit drilling program, product sampling, a tender process for mining and processing operations, and updated resource modelling – the company can proceed with stage one mine plans.
Executive Chairman John Welborn says restarting operations at Shine is an opportunity to expand the company’s production and leverage its Midwest mining and transport logistics capabilities.
“Shine will be our second wholly owned producing asset in the Midwest and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows, and profitability growth,” he says.
Fenix, which has a market capitalisation of $236.17 million, says the pre-production capital expenditure is minimal given the availability of all required critical infrastructure. The approved budget for stage one is $7.4 million and encompasses upgrading the existing camp infrastructure, contractor mobilisation, and the Shine access road.
The company will use its wholly owned Newhaul logistics and port services functions to realise “significant cost savings”.
Haulage is expected to average 100,000 tonnes per month from starting production during the current and forthcoming financial years.
The Shine Mine lies 295km east of Geraldton and 70km south-east of Yalgoo. The mine represents an attractive ‘shovel-ready’ growth project for the company with similar mining scale and operational characteristics to its existing operations at Iron Ridge.
Write to Aaliyah Rogan at Mining.com.au
Images: Fenix Resources
