same grade of half of all iron ore exported

This is the same grade, or type, of direct shipping grade produced at large BHP and RIO mines such as Yandicoogina and Yandi. Collectively known as yandi fines.

Read here to better understand:

Sintering - which removes water from the ore (a normal part of steel manufacture).....upgrades the ore to around 64%FE. In view of what seems to be very credibile and honest management......this is one of the best stock exchange announcments I have seen (relative to the present market cap of this company).

By way of example.....MGX have a total of 100MT of resources and reserves from 3 deposits after years of exploration. A company 20 times the size of YML


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The palaeochannel deposits comprised of pisolitic limonite are prized for their low impurities such as phosphorus. They are not as rich in iron as the BIF enrichment ores. Those mined usually contain 57-59% Fe.

Detrital iron ore deposits, including scree and canga deposits, are found downhill of the BIF enrichment deposits from which they have been eroded. They are usually easily recovered and have a grade of between 40-55% Fe. BIF enrichment deposits also occur elsewhere in Western Australia in the Pilbara (e.g. Yarrie), and the Yilgarn Block (e.g. Koolyanobbing) and in South Australia (e.g. Iron Duke, Middleback Range


Bedded iron ores in that the predominant mineral is goethite. Goethite is basically an iron oxide that has water in its crystal structure and is commonly referred to as a hydrous iron oxide. Most channel deposits, including those at Yandicoogina and Robe River, produce mainly a fines product. The iron content is lower due to crystalline water, however, fines require agglomeration or“sintering” to turn the fines into lump for the steel making process. This process requires heat and that drives the water off the goethite and literally upgrades theore to grades that are comparable to the high grade haematites.

We also calculate the ‘upgraded’iron value, which is called calcined iron grade. The higher the LOI, the higher the calcined iron grade. The Nullagine CIDs have a much higher average LOI than most other CID deposits, so our upgrade is also that much higher.The sintering process is a normal part of steel making and with CIDs occurr in gpredominantly at surface, mining costs are lower. Processing costs are also low
and the customer receives good quality ore with low contaminants at a lower price.