Mount Gibson Iron is targeting the delivery of first ore sales from the Shine iron ore project in Western Australia in mid-2021.
The company aims for a direct shipping ore (DSO) production rate of 1.5 million wet metric tonnes a year based on stage one proven ore reserves of 2.8 million tonnes grading 59.4 per cent iron.
The mine has a total Hematite mineral resource of 10.8 million tonnes grading 58.2 per cent iron.
The stage one pit is forecast to yield around 2.9 million wet metric tonnes of lump and fines material over an initial period of two years.
Mount Gibson stated that there was potential to extend the mine life by another two years by developing a stage two pit.
“We are pleased to be able to capitalise on the positive iron ore market conditions by progressing the Shine iron ore project in order to extend our significant presence in the mid-west, where we have been an established iron ore exporter since 2004,” Mount Gibson chief executive Peter Kerr said.
“Our detailed review of the project has confirmed Shine as an attractive production opportunity that can be quickly brought on line and appropriately staged to suit market conditions.”
Mount Gibson is now finalising commercial and permitting requirements to start development at Shine.
The project is 85 kilometres north of Mount Gibson’s Extension Hill mine site and 230 kilometres east of the port of Geraldton.
Mount Gibson acquired the mining and development rights associated with Shine in 2014, but deferred the project due to weak market conditions.