Macro Metals’ (ASX:M4M) wholly owned services business has been awarded a technical permit contract at the Extension Iron Ore Project in Western Australia focused on exploration as well as mine site establishment.
A key component of the technical services scope of work involves Macro validating metallurgical testwork conducted by the former project holder that established a 11.29 million tonnes iron ore resource in 2019.
Macro, which has a market capitalisation of $43.54 million, will engage with the Pilbara Ports Authority as part of project planning works to determine availability of an annualised export allocation of 1.5 to 2 million tonnes per year for Extension.
The company will also conduct drill and blast, mining, load and haul operations in conjunction with a strategic partner and head project contractor RE:Group.
Further, Macro will also exclusively perform crushing and screening under build own operate model on prevailing market terms.
Chairman Tolga Kumova says this award is testament to the level of expertise that the Macro team has demonstrated.
“Pleasingly, we will immediately begin generating cashflow from the contract as our team commences providing the technical services required to expedite project approvals and development,” Kumova says.
“Our team will, in conjunction with the team at RE:GROUP, transition the project into operations whereby we will jointly undertake mine site establishment, drill and blast, mining and lead and haul operations to the run-of-mine pad for life of mine of the project.”
Managing Director Simon Rushton adds this contract locks in revenue and margins for the business and creates a solid foundation for the contracting order book that is being built.
The Extension Project’s owner privately held Project Rusty appointed RE:GROUP as the head mining services contract for the project.
RE:GROUP’s scope of work involves the full suite of technical, development and operational services required to secure all remaining project approvals to establish the mine site and thereafter operate the mine and deliver the saleable iron ore product to the Utah Point Bulk Handling Facility.
The expected revenue to be generated by Macro from the contract will be reported to the market as soon as possible, following the company completing its technical services scope of work.
Macro Metals is an explorer, developer, and mining services company focused on economic development of natural resource assets. The company owns a portfolio of manganese and iron ore assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Macro Metals
