Strike Resources (ASX:SRK) announces that it will move forward with a maiden shipment of lump iron ore, taken from its Paulsens East Iron Ore Mine in Western Australia.
The maiden shipment, comprising 60,000 tonnes of Paulsens East Lump DSO stockpiled at the Utah Point Multi-User Bulk Handling Facility (Utah Point), and 6,000 tonnes to be hauled to Utah Point from the project, is expected to be shipped aboard the MV Cepheus Ocean in the next few days 2022.
The shipment has been reportedly sold to a Hong Kong based buyer, with the terms of the sale agreement including market reflective pricing referenced to a benchmark base price and lump premium, with market-typical impurity penalties being on a Cost and Freight (CFR) basis for delivery into China.
while this shipment represents a ‘significant’ milestone, the mining operations within the Paulsens East Iron Ore Mine have gone under review in light of current market conditions
The company also notes that while this shipment represents a ‘significant’ milestone, the mining operations within the Paulsens East Iron Ore Mine have gone under review in light of current market conditions, including forward iron ore benchmark pricing.
In addition, operations are set to be scaled down over the coming week in order to process ore in circuit with suspension of further production until the market conditions begin to improve.
However, the company announces that it is continuing with work on stage two development at the Port of Ashburton in Onslow, with the company now in advanced negotiations with key contractors for transhipment operations from the Port.
The Port of Ashburton would result in ‘significantly’ lower trucking costs from mine to port and offer a longer-term export solution.
The Paulsens East Iron Ore Mine is located about 233km from the township of Onslow in Western Australia and and consists of a 3km long outcropping, ‘high-grade’ hematite ridge and a JORC Indicated Mineral Resource Estimate (MRE) of 9.6Mt @ 61.1% Fe, 6.0% SiO2, 3.6% AI2O3, 0.08% P (at a cut-off grade of 58% Fe).
With the maiden shipment now scheduled, Strike Resources announces that it remains focused on stage two development at its Paulsens East Iron Ore Mine, which includes open pit mining of the Paulsen East hematite ridge and generating an increase of annualised production of up to 1.8Mtpa.
Images: Strike Resources Limited
