Fenix Resources Limited (ASX: FEX) has made a positive Final Investment Decision (FID) for the Iron Ridge high-grade iron ore project located near Cue, Western Australia.
Managing Director, Rob Brierley, said that following the positive FID decision and settlement of the first tranche of $10 million of the company’s proposed $15 million capital raising, Fenix has moved rapidly to secure camp buildings and key heavy vehicle equipment for the road transport function.
Additionally, the company is moving quickly to conclude contract arrangements with key service providers including the mining, crushing and screening, road transport and port services contractors.
Mr Brierly said that under current expected timelines, Fenix expects to commence development activities at Iron Ridge in October 2020, with a view to first shipment in early 2021.
The Iron Ridge Iron Ore Project is a premium DSO deposit which hosts a JORC 2012 compliant resource located around 490 km by road from Geraldton port.
High grade iron ore attracts a premium price on the seaborne market as Chinese steel works increasingly demand more pure inputs with lower emissions due to increasingly strict government regulations.
Only requiring crushing and screening, 1.25 million tonnes of ore per annum is proposed to be trucked to the port by a JV signed off in May 2019, with trucking specialist Newhaul Pty Ltd headed by respected logistics expert Craig Mitchell who was the founder and owner of Mitchell Corp before selling to Toll Group.
In relation to the production target, the Company confirmed that all material assumptions underpinning the target continue to apply and have not materially changed since the announcement of the feasibility study in November 2019.
Negotiations are well advanced with Mid-West Ports Authority at Geraldton where export capacity is available. Statutory permitting is currently partially approved and contract documentation with key service providers is advanced.
A total of 350 Full Time Equivalent (FTE) direct and indirect jobs throughout the supply chain will be created including 70 FTEs on site at the Iron Ridge mine if project approvals are granted.
Geraldton is set to be a winner with one hundred (100) FTEs created including 70 roadtrain drivers and a fleet maintenance depot established with an additional 30 jobs.
More jobs will be created at the Port and at local businesses and contractors that service the project.