Ann: Update on Iron Ore Spin Off, page-43

Jupiter Mines optimistic on iron ore spinoff as DSO projects gain more traction

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/australian-iron-ore-majors-to-continue-surge-amid-china-s-valemax-port-buildout-59688945

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On Sept. 4, Jupiter approved spinning out its Central Yilgarn iron ore projects in an IPO to be led by former CEO and COO Greg Durack, who managed feasibility studies on the Mount Mason DSO hematite project and the Mount Ida magnetite project.

Jupiter's London-based CEO, Priyank Thapliyal, said the IPO funds would fast-track Mount Mason's development, hoping to use the kind of "creative thinking" that brought its South African Tshipi Borwa asset from having no rail and port allocation to being a top-five manganese producer globally.

Thapliyal told S&P Global Market Intelligence that a long-term iron ore price does not need to be contemplated for Mount Mason, given the maiden measured and indicated resources in 2011 totaled 5.9 million tonnes grading 60.1% iron ore, so the project could start with 500,000 tonnes per annum, rising to about 1 mtpa later.

In the midterm, Jupiter will look at progressing Mount Ida, which has a 1.23 billion-tonne inferred resource but was frozen amid depressed iron ore prices in 2012 when a feasibility study indicated higher capital and operating costs than those estimated in 2011.

BHP Group first mapped Mount Mason in 1969 and assays yielded 62.8% iron, but infrastructure in the area was nonexistent at the time. Fenix Resources Ltd. Managing Director Robert Brierley said infrastructure and low iron ore prices have been holding DSO projects back for years now.

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