Magnetite Mines is preparing to commence a definitive feasibility study at its Razorback iron ore project in South Australia after receiving positive results back from a pre-feasibility study (PFS).

The PFS supports declaration of a maiden ore reserve of 473 Mt based on 12.8 Mt/y plant throughput and 2 Mt/y of high-grade concentrate, but it has opened the door for two other options.

Process plant optimisation, for instance, could see a nominal 15.5 Mt/y feed using three grinding stages, three stage magnetic separation and flotation to generate a premium-grade magnetite concentrate with 67.5-68.5% Fe content. And a “Head Grade Improvement Case”, based on higher mining rates with a head grade upgrade from selective mining or ore sorting, could see around 2.7 Mt/y of high-grade concentrate produced.

Razorback would involve initial capital investment of $429-$506 million for a post-tax internal rate of return of 14-33%. This is based on the range of throughput and concentrate production options, in addition to 62% Fe iron ore prices of either $110/t or $150/t.

Magnetite Mines said preparation for a prompt commencement of a definitive feasibility study is well advanced with further drilling, test work, metallurgical investigation and engineering workplans in progress.

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