CZR Resources has its sights set on more resource growth at its Robe Mesa iron ore development in the Pilbara after acquiring an adjoining tenement to Rio Tinto’s Mesa F project from Fortescue.
The new exploration licence adjoins to the south of the company’s P529 iron ore deposit that is held within a newly granted mining licence.
The expansion means CZR’s strike length of the P529 deposit has grown to 1.1km and it sits only 5km away from the company’s 45.2 million tonnes Robe Mesa iron ore mineral resource.
The exploration tenement purchased from Fortescue gives CZR tenements and resources surrounding Rio Tinto’s Mesa F deposit to both the south and north.
In order to secure the new ground CZR agreed to give Fortescue a cash payment of $150,000, 3.3 million shares which have already been issued, a 1 per cent free-on-board royalty covering the entire P529 deposit of the newly expanded ground.
The P529 deposit currently contains 4.2 million tonnes at 53 per cent iron or 59.2 per cent calcined iron. Calcined iron is the iron content after volatiles are removed, these are mainly in the form of water bound in the iron rich minerals. The higher-grade zone of P529 extends into the new acquisition raising expectations by CZR of a further resource upgrade for the deposit.
CZR’s flagship Robe Mesa resource currently stands at 45.2 million tonnes at 56 per cent iron or 62.7 per cent calcined iron. At a lower cut-off grade the resource nearly doubles to 89.6 million tonnes at 54.4 per cent iron or 61.0 per cent calcined iron.
However, on the back on the new acquisition the company is planning an imminent update on its reserve.
CZR Managing Director, Stefan Murphy, said: “This tenement is pivotal. CZR now has a substantial tenement position within the Robe Valley, north and south of Rio Tinto’s Mesa F deposit. As a result, we have significant scope to continue growing the resources either side of Mesa F while opening up the possibility of creating additional value through our proposed supply chain to the Port of Ashburton and opportunities with other miners and developers close to our Robe Mesa project”.
CZR will shortly undertake drilling on the higher-grade zone of its P529 deposit which extends into the newly acquired ground. The company argues that by consolidating Robe South it has been provided with a potential second source of iron ore for its Robe Mesa project. The ore could be a standalone source or blended with the larger and higher-grade Robe Mesa deposit. CZR believes the acquisition is consistent with its strategy of growing mine life and production rates for the broader Robe Mesa project.
CZR is currently knee deep in its Definitive Feasibility Study, or “DFS” for Robe Mesa targeting a production rate of 3 million tonnes per annum, with the updated ore reserve scheduled for reporting in the near future.
Over the last three months, CZR has been busy completing a number of key DFS milestones including an 83 per cent increase to the Robe Mesa resource and a strategic partnership to develop a low-cost iron ore export hub at the port of Ashburton. CZR has also developed a partnership with Strike Resources and CSL Australia to secure approvals for the construction of a 5 million tonne per annum bulk loading facility for the export of iron ore from the Port of Ashburton, Onslow Western Australia.
The company’s mining licences have been granted for a period of 21 years across both the Robe Mesa Deposit and P529 Deposit.
With each small step CZR Resources is getting closer to production at Robe Mesa. With iron ore prices remaining strong, timing could well be on the company’s side as it graduates to producer status.
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By Matt Birney
