Grange Resources has returned to full production rates at the Savage River iron ore project in Tasmania for the remainder of 2019 after a “challenging” March quarter.
The Tasmanian-based producer experienced low production and product sales in the March quarter, a period that the company instead focussed on minimising the overall impact to achieve full-year production.
Grange has now established access to the main ore zone at the Savage River mine, leading to a target production of 1.2 million tonnes of pellets for the second half of the year to reach 2.1 million tonnes output for the full year.
“The team will continue to focus on sustained delivery of high-grade ore to support full production rates for the balance of 2019,” Grange chief executive M. Honglin Zhao said.
Grange observed a consistent demand for iron ore and an increase in prices during the June quarter, in which the company continued seeking after term off-take agreements.
The company has also progressed the underground mine plan at Savage River, with exploration decline on track for completion by the end of the year.
Its pre-feasibility study (PFS) continues to progress with geotechnical modelling and domaining, infrastructure designs and preliminary scheduling for potential ore delivery from a block cave.
Grange is also considering sub-level caving methods at Savage River, which will be reviewed as part of the PFS. The study is expected to conclude in the first quarter of 2020.
“Progress on the feasibility study for potential underground mining continues to plan and will inform our life of mine planning,” Zhao said.
The Savage River magnetite iron ore mine is set to operate until 2034.