Fenix Resources has signed a joint venture (JV) agreement with Scorpion Minerals for iron ore tenements that are adjacent to the Iron Ridge project in Western Australia.
The agreement covers tenements E20/953, which could be acquired by Scorpion Minerals or Element 25, and E20/948, which is owned by Scorpion.
Under the JV, Fenix may earn 70 per cent of the iron ore rights on the tenements by funding exploration and drilling to identify up to 10 million tonnes of iron ore.
E30/953 and E20/948 lie adjacent to Fenix’s Iron Ridge project, which has a JORC-compliant total mineral resource of 10.5 million tonnes of high-grade direct shipping ore (DSO) at 64.2 per cent iron.
Fenix managing director Rob Brierley said like the existing Iron Ridge project, the tenements would benefit from the infrastructure already in place at and around the project.
This includes a 10-year lease agreement with the nearby Port of Geraldton for exports.
“Fenix is excited by the opportunity to increase its land holding and potentially, its iron ore resource to further benefit from the regional infrastructure, ore transport and port facilities already established for the Iron Ridge project,” Brierley said.
The terms of the agreement include Scorpion granting Fenix the right to earn a 70 per cent interest within the four-year farm-in period, should Fenix satisfy its exploration requirements.
Aside from funding all drilling up to 10 million tonnes of iron ore, it is also required to complete a feasibility study on a minimum one million tonne iron ore deposit and spend no less than $350,000 on exploration expenditure.
After the initial farm-in period, Scorpion will grant Fenix sole rights to complete iron ore exploration.
Fenix is set to achieve early iron ore sales early this year, aiming to dispatch its first shipment of high-grade iron ore from the Port of Geraldton this quarter.