(MENAFN - ABN Newswire)
Murchison Metals Limited (ASX:MMX)(PINK:MUMTF) is pleased to announce that a study update has been released by Crosslands Resources Limited (Crosslands).
Major points of significance in the Crosslands update are:
- Crosslands is targeting a production rate of between 25 and 35mtpa from the expanded Jack Hills operations comprising a mix of Direct Shipping Material (DSO), hematite sinter feed and magnetite concentrates.
- Initial studies suggest a production rate of up to 10Mtpa of DSO.
- Early feedback from potential customers has been positive, with the ultra low alumina and phosphorous content of the Jack Hills products being highly attractive in the international steel market.
- While a new, interim resource statement is due out shortly, Crosslands has identified further DSO and Beneficiation Feed Material (BFO) targets that require further testing.
The update underlines Murchison's growing confidence in Jack Hills' potential as a large scale, multidecade project yielding substantial cash flows and economic value.
Crosslands is 50% owned by each of Murchison and Mitsubishi Development Pty Ltd.
Murchison Executive Chairman Paul Kopejtka said the Crosslands update positioned Jack Hills as a significant project globally in terms of new supply sources.
"Jack Hills is now a substantial project in international terms, sitting above many other projects in terms of the size of the target resource, quality, premium products low in impurities and the target production profile," said Mr. Kopejtka.
"It is now emerging with a production profile on a par with projects such as Anglo-American's Minas Rio in Brazil, Vale's Maquine-Bau and Rio Tinto's Brockman 4.
"We believe Jack Hills is on track to be the biggest exporter of iron ore from the mid-west but we are also very pleased with its growing significance in international supply terms."
In its update, Crosslands said it was adopting a dual production strategy for Jack Hills, involving both DSO and BFO facilities to produce two high quality products to meet demand from customers in Asia.
DSO operations will be configured to enable Crosslands to better optimise DSO production and drive cash flows in the early years of the expansion.
Crosslands said it has adopted a modular approach to processing capacity for the beneficiation plant, which will provide it with unique flexibility at Jack Hills in being able to incrementally add further modules as demand rises.
The likely production profile of each beneficiation module will be in the order of 10 million tonnes of product per annum.
Crosslands will be a foundation customer of Oakajee Port & Rail, the developer and manager of the port and rail infrastructure for miners in the mid-west region.
OPR is also 50% owned by each of Murchison and Mitsubishi Development Pty Ltd.