Australian iron ore mining company Flinders Mines (ASX: FMS) has begun a Scoping Study at its flagship Pilbara Iron Ore Project in Western Australia.
The study will focus on the potential development of resources at the project to produce a direct shipping ore (DSO) iron ore product of over 60% Fe at a sustainable rate of up to 3 million tonnes per annum.
Key focuses of the study include accessing DSO grade ore with an emphasis on low strip ratios and mining above the water table within the Delta and Paragon deposits, along with minimising capital expenditure with contract mining; crushing and trucking; and using public roads and third-party ports.
Other items to review in the study include assessing options to reduce the project’s carbon footprint through renewable energy; financing; and proactively engaging with Traditional Owners to consider value adding partnership opportunities.
The results of the Scoping Study are expected to be released in Q3 2023, and Flinders notes it will provide a ‘base case’ scenario for the development of the project. Additionally, the company is planning to start producing iron ore at the project in 2025.
For the study, Flinders has engaged CSA Global for geology and resources, Orelogy for mine planning, NeoMet Engineering for metallurgy, Ausenco for mine infrastructure and non-processing infrastructure, and Jacobs (NYSE:J) for mine access road design. The company has also enlisted Advisan for groundwater, MLG Oz (ASX:MLG) and Pastons Solutions for transport and logistics, as well as FTI Consulting for financial modelling.
Following a positive Scoping Study, Flinders intends to complete a Prefeasibility Study (PFS) which will aim to refine the capital and operating costs, as well as evaluating project enhancements to lower carbon emissions while creating a sustainable long-term iron ore business.
Potential value adding project enhancements identified include hybrid on-site power and electrification of mining and long-haul trucking fleets.
In addition to the PFS, Flinders will also develop a mine plan for the recovery of ore from the Blackjack and Champion deposits, which are located immediately west of the Delta deposit and is not included in the Scoping Study.
“This Scoping Study will redefine Flinders’ Pilbara Iron Ore Project to ‘right size’ the development for our company with a focus on speed to market…”
Commenting on the Scoping Study, Flinders Mines Chief Executive Officer (CEO) and Managing Director Steven Michael says: “This Scoping Study will redefine Flinders’ Pilbara Iron Ore Project to ‘right size’ the development for our company with a focus on speed to market and lowering upfront capital, while leveraging off the considerable work already completed at PIOP, including state and federal approvals, native title agreements, and about 190,000m of drilling.
Within PIOP’s large global resource base, we are now looking at initially developing higher grade pits within the Delta and Paragon deposits which are expected to provide sufficient ore to demonstrate the economics of a lower tonnage, higher grade development compared to previous alternatives considered for PIOP.
Over the coming 12 months, the primary aim for Flinders is to progress the various technical and financial studies for PIOP to ensure the project is producing iron ore in 2025. We will do this in conjunction with the Traditional Owners on whose lands we work, sharing the benefits a close partnership can deliver.”
Flinders Mines is an Australian iron ore mining company focused on bringing its flagship Pilbara Iron Ore Project into production. The project is located about 60km northwest of Tom Price and is underpinned by a JORC Mineral Resource Estimate (MRE) of about 1.5 billion tonnes @ 52% Fe.
Images: Flinders Mines Ltd
