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IMX’s objective for the Cairn Hill project is to bring it into production as soon as possible. IMX is finalizing the feasibility studies and government approvals. The objective is to commence mining in CY 2007. The initial phase of the mine is planned to produce 1.4Mtpa of magnetite (iron ore) / copper / gold ore, with a 10 year mine life. The ore ranks as some of the highest grade iron ore in Australia with 71% Fe equivalent DSO product.
In terms of funding, the Company is currently negotiating an off-take and cornerstone partnerships.
Cairn Hill February 2007 Inferred Mineral Resource Estimate – Magnetite Domain
(above a 30% Fe equivalent cut-off)
|
Model |
Tonnes |
Fe |
Cu (%) |
Au (ppm) |
|
In situ |
10.6 |
52.7 |
0.4 |
0.1 |
|
Diluted |
11.3 |
50.3 |
0.4 |
0.1 |
Two versions of the Mineral Resource were analysed. The first reports an in situ Mineral Resource, while the second presents a diluted Mineral Resource calculated by adding a 0.5 metre wide envelope of edge dilution to the in situ Mineral Resource.
All resource reporting is above an iron equivalent cut-off grade of 30% Fe for IMX’s magnetite ore domain. The equivalence equation was based on three year average metal prices of US$53.62/t iron, US$2.03/lb copper and US$490/oz gold and metal recovery factors of 88% for iron, 95% for copper and 89% for gold. An in situ bulk density of 4.3 t/m3 has been applied to the magnetite horizons and 2.9 t/m3 to the surrounding mineralised (copper/gold envelope) host rocks.
The magnetite concentrate that can be produced from Cairn Hill ore will be one of the highest available worldwide with a grade of up to 71.5% possible. Concentrate of this quality has strong value in use benefits to steelmakers. In addition due to the coarseness at which the concentrate can be produced, it can be fe directly into the blast furnace like fines without the need for pelletisation.
Metal recoveries are exceptional for a magnetite with primary recoveries for iron up to 92.6% and up to 98.2% for copper.
IMX is currently evaluating on site dry magnetic separation to increase the shipping grade of the ore. Testwork shows that it is possible to increase the grade of the Fe by up to 8%, which has major implications for the shipping economics. Importantly, the byproduct of mining iron ore is copper, and copper will represent up to 50% of IMX’s revenue from the Cairn Hill project.
Milestones to monitor
- Quarter 2, 2007: Completion of Feasibility Study
- Quarter 3, 2007: Approvals process completed - Mining to commence at a trial pit
- Quarter 4, 2007: Commencement of production of iron ore and first shipment of ore expected in the first half of 2008.
Initial Pit View
Initial Pit View
