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Magnetite Mines (ASX:MGT) has put together an outstanding team of employees, specialists and experts and consultants to deliver a low capital, staged and efficient development pathway for its globally significant Razorback iron ore resource in South Australia.
The PFS is reviewing a wide range of options for mine development in order to select a single, optimised go-forward case that could lead to shipping the first ore as early as 2024. The company has previously put a July 2021 timeline for the completion of the study.

Razorback’s selective seduction

The Razorback project is located on the western portion of The Braemar iron ore region, 250km northeast of Adelaide.
Preliminary drilling has shown that the mine contains high tonnage of iron ore mineralisation. Initial studies have also confirmed the lateral continuity of high-grade iron ore horizons within the mine are potentially amenable to selective mining. It’s a method used successfully by major iron ore miners like Fortescue Metals Group (ASX:FMG), which could potentially lead to a production of higher grade ore at a lower cost.
Progress on several fronts has been made fast leading up to the PFS, including an agreement with NextOre for the supply of bulk ore sorting equipment that will make it easier to sort the high-grade ore from the lower.
The project is being financed by a $5.95 million rights issue completed in September 2020, along with royalties from the Rothsay gold mine expected to be paid to Magnetite in the second half of this year.

Leading the commodities super cycle

On completion of the PFS Magnetite Mines will be well positioned to take advantage of the next commodities super cycle, with experts singling out iron ore as the commodity to lead the pack.
The company will also be in the driver’s seat as higher grade magnetite products are becoming the product of choice for Chinese steelmakers for efficiency and environmental reasons, realising premiums over prices for lower grade hematite products.
This article was developed in collaboration with Magnetite Mines, a * advertiser at the time of publishing.