high quality ragged rock - project attracts ma

The company, which listed in 2007, holds four key magnetite
projects covering 100km of coarse grained premium quality
magnetite targets in Western Australia’s southwest region.
What makes these projects unique
is that while most Australian
magnetite projects require very
fine grinding (approximately 25-
35 microns) to achieve acceptable
concentrate quality, the coarse
grained nature of Magnetic’s
projects achieves very high quality
concentrates at coarser grind sizes
(75 microns). Metallurgical test
work is also examining suitability
for sinter feed with a coarser
product greater than 100 microns.
The company’s flagship Ragged
Rock project lies around 100km
northeast of Perth. Using
aeromagnetics, Magnetic has
identified 15 coarse-grained iron
ore magnetite targets within the
region over a cumulative strike of
some 58km.
Initial field trips identified
outcropping, very coarse grained
magnetite at eight of the targets
of which six have been subjected
to, industry standard DTR test
work.
Experienced geophysicist and
Magnetic managing director
George Sakalidis told The Pick
that Ragged Rock was a worldclass
project which would expect
to produce a high-quality, coarse
grained magnetite concentrate.
“We are looking to produce a high
level concentrate at 70 per cent
iron with very low impurities
including silica at around 1-1.5 per
cent, alumina around 1 per cent
and very low phosphorus,” he said.
Sakalidis said that of the 19 holes
so far completed at the project, 18
had hit iron formation.
Earlier this year, Magnetic reported an exploration target of
100-270Mt at 20-40 per cent iron for Target 1 which applies
to only 11 per cent of the 58km strike length of BIF targets.
The exploration target comes after consulting engineers
Engenium Pty Ltd completed a conceptual initial financial
assessment of Ragged Rock which showed a viable project
could be made based on an initial 60Mt to 120Mt project
with production of between 1-2Mt of
concentrate per annum.
What is particularly important is
the very low capex and opex of the
project.
A key reason for the low capex is
Ragged Rock’s close proximity to
existing infrastructure required
to get the product to market. The
project lies within 15km of both the
Trans Australian railway line linking
the project to Kwinana port and the
Albany Avon railway line.
“What separates us from a lot of other
iron ore plays is that we don’t need to
build a railway line,” Sakalidis said.
“With a lot of the other projects in
Australia, you need to build 200km
or so of railway which would cost
significantly more than our total
estimated capex.”
According to Sakalidis, Albany port
looks like the most viable option for
exporting product.
Another positive is that grid power
and water is available at the site
while there is no requirement to
build a mining camp as most of the
workforce is expected to come from
Northam and York which lie within
15km of the project.
Magnetic is conducting further
drilling and feasibility work aimed
at developing a JORC resource and
determining whether the project is
economically viable.
In a sign of the high level of confidence
in its projects, Magnetic has recently
announced the Industry Group, which
is led by Magnetic executive director
Gavin Fletcher and John Blanning,
will contribute up to $1 million in exploration funding,
including geological mapping, ground magnetic surveys and
RC drilling.
While Ragged Rock is its major focus, Magnetic’s portfolio of
projects also includes Jubuk, Calingiri and Cheesemans.
With four coarse-grained, premium-quality magnetite projects all in close proximity to key
infrastructure routes in Western Australia, Magnetic Resources (ASX: MAU) believes it
offers a unique investment opportunity.