Iron-ore-mining and exporting company Centrex Metals has signed a heads of agreement (HoA) with low-grade iron-ore beneficiation techniques and technology company Aussino Mining to complete a feasibility study into the beneficiation of low-grade iron material from its Wilgerup mine, in the Eyre Peninsula, Australia.
Centrex says that, under the terms of the HoA, Aussino is to provide full financing for the feasibility study, which will be conducted in four phases.
Phase one entails the metallurgical testwork for process evaluation, while the second phase will be the funding for the completion of the feasibility study and the feasibility study into project viability and profitability.
Phase three will involve the funding of the completion of the engineering design for the constrotary crusher washer manufacturersruction of a low-grade material processing plant, including the funding for all the statutory approvals required, and phase four entails the construction and commissioning, including the funding for all the construction and commissioning of the low-grade material processing plant.
On completion of the first three phases of the feasibility study, and subject to all the statutory approvals, as well as the Centrex board’s approval to proceed, Aussino is required to fullcone crusher spare parts indiay fund the design, construction, commissioning and the ongoing operating costs of the beneficiation plant on the Wilgerup site.
Centrex believes that the HoA is an opportunity for the company to further optimise the Wilgerup resource and has the potential to extract additional high-grade ore tons from the material classified as waste.
The proposal also provides further benefits for the company by possibly reducing the overall mine footprint of the waste dump and reducing the stone crusher distributors in indiarehabilitation requirements for the Wilgerup mine, the company says.
Based on the preliminary testwork, the HoA has the potential to recategorise 15,5-million tons of 50%, or less, of iron (Fe) material, which is currently classified as mineralised waste, into saleable ore.
Depending on the recovery rates, capital and operating costs, which are to be determined during the feasibility study, Centrex expects that seven- million tons to eight-million tons of saleable ore may jaw crushers manufacturers associationbe generated through the beneficiation process.
The company sees this HoA as a low-risk venture with the possibility of providing additional revenue for the shareholders.
The HoA entails Centrex providing information and services, including the orebody samples for metallurgical testing, the resource/reserve evaluation data, a comprehensive mining schedule and a low-grade mining schedule approved by Centrex.
On completion of the feasibility study, as well as receipt of all the statutory and Centrex board approvals to proceed, access will be given to the site infrastructure, including power and water; an allocated area on site for the plant construction for the treatment of low-grade ore; access to approved transport routes; the management of all the statutory operational approvals on the lease; and access to port facilities for ship loading on the Eyre Peninsula, Centrex explains.
Centrex will not be responsible for any of the capital or operating costs of the project and only needs to supply access to the mineralised waste stockpile.
Centrex says that, should Aussino fail to progress the pro- ject, following the feasibility study, all information will be passed onto Centrex, including engineering drawings, production schedules, capital costs and design operating costs.
This proposal represents a low-risk opportunity for Centrex to capitalise on a mineralised waste stockpile that would otherwise require rehabilitation, says the company.
“Centrex is confident of progressing the feasibility with Aussino and creating the oppor- tunity to fully optimise the Wilgerup deposit and add further value for the shareholders,” says Centrex chairperson David Lindh.
The latest Wilgerup production schedule 7b1, completed in December 2009, indicates that, in addition to the high-grade haematite, there is a further 34-million tons of material at less than 50% Fe within the optimised pit shell.
In the original plan, this material was scheduled to be directed to the waste dump, requiring profiling, topsoil application and rehabilitation, reports Centrex.