A new iron ore mine is set to emerge in the Pilbara region of Western Australia after junior miner Strike Resources completed a feasibility study (FS) for the Paulsens East project.
The project is envisioned to produce six million tonnes of iron ore over an initial four-year mine life.
Three-quarters of the production will comprise direct shipping ore (DSO) lump at 62 per cent iron.
Strike considers the project to bear a low technical risk as it opts for conventional mining, crushing and screening, as well as direct transport to Port Hedland for export.
“The completion of the feasibility study is another key milestone achieved in moving Paulsens East towards production,” Strike managing director William Johnson said.
“The continued strength to the iron ore price contributes to the robust economics of the project, which are driven principally by the high-quality nature of the iron ore contained within the deposit and the low life of mine strip ratio.”
Strike plans to develop an open cut mine for the Paulsens East project, which is around 10 kilometres from Northern Star Resources’ Paulsens gold mine.
Johnson flagged the possibilities of improving grades, increasing the production rate and extending the mine life after the company achieved its initial target.
Strike aims first ore production to commence in the first half of next year.
The company received a 21-year mining lease last month and intends to complete mining proposal submission, undertake heritage surveys required and advance contract negotiations with potential providers for Paulsens East mine site construction, drill and blast and mining and crushing services during the December quarter.