Surging iron ore prices have driven Strike Resources’ decision to restart work on a number of its iron ore projects in Australia and Peru.
The company holds three iron ore assets, the Apurimac and Cusco iron ore projects in Peru and the Paulsens East iron ore project in Western Australia, alongside its lithium and graphite prospects.
Strike plans to build off the foundation of work conducted between 2006-2008 on its Paulsens East project, which focused on the potential for an operation of up to a one million tonnes per annum.
The site showed promise for transportation of direct shipping quality iron ore (DSO) by truck to an existing port nearby.
In a statement explaining the company’s plans, Strike stated that the lack of previous development was principally driven by “the significant decline in the iron ore price.”
The commodity’s price plummeted from over $US180 ($261.7) per tonne during 2011 to lows of less than $US50 per tonne in 2015.
However, the recent rebound in iron ore prices to a current level of approximately $US100 per tonne has encouraged Strike to recommence work at its sites.
The initial Paulsens East works will involve resource modelling to define a JORC minerals resource statement for the iron ore mineralisation previously identified in surface sampling and two extensive drilling campaigns.
Upon completion of the resource statement, it will examine the potential for undertaking a direct shipping ore small scale mining operation using contract mining, crushing and transportation by truck to port, then shipping to China.