The Mt Woods Magnetite Project is a group of eight exploration licence areas, with a total area in excess of 3,400km2, located approximately 50 km south of Coober Pedy, South Australia.
The Project area includes a JORC Inferred Mineral Resource of 569Mt @ 27% Fe at the Snaefell Magnetite Deposit located 15km south-west of IMX’s operating Cairn Hill Mine (IMX 51%). In addition to the Snaefell Inferred Mineral Resource, there are a number of other iron ore prospects including Tomahawk, Tomahawk North, Axehead and Pinnacles that make up a Global Exploration Target of between 900-1,200Mt @ 18-32% Fe elsewhere in the project.
Existing key infrastructure and favourable metallurgy (studies indicate that coarse grained concentrates that could be produced at Snaefell, have the potential to attract a significant price premium) differentiates Mt Woods as an economically attractive, lower risk and feasible near-term development opportunity.
Access to existing infrastructure, including available rail and port capacity currently being used for IMX’s Cairn Hill Mine and the coarse grind, allows for a potentially lower capital cost and project complexity than most Australian magnetite projects.
Following completion of a favourable scoping study in June 2013 for the development of a project at the Snaefell deposit, work has continued with a focus on investigating alternatives to improve the return from the Mt Woods Magnetite Project. These alternatives have primarily targeted rail, port, power supply and shipping options to support several throughput scenarios between 1.8Mtpa and 3.5Mtpa of production.
Such development work has included engagement with key infrastructure owners, focussed on securing access to critical project infrastructure and delivering satisfactory outcomes for both the owners of existing infrastructure and the Mt Woods Magnetite Project.
Preliminary engagement has also commenced with South Australian Government authorities including the Department of Environment, Water and Natural Resources and the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE).
In preparation for further project development work, a geological, metallurgical and geotechnical drilling program has been developed for the Snaefell deposit and has been submitted to DMITRE for its approval. A heritage survey of the proposed drill collars has also been completed, with results and heritage approval expected during the December quarter. This will expedite the program once funding is obtained.
The Company is working with Azure Capital Limited to secure a partner for the evaluation and development of the Mt Woods Magnetite Project, with a number of parties engaged and at different stages of assessment.
3. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the analysis and outcomes presented below will be realised.4. ASX news releases 4 June 2013 and 13 June 2013