ASX ANNOUNCEMENT 28 JULY 2022
onlyFOURTH QUARTER ACTIVITIES REPORT
ENDING 30 JUNE 2022
Highlights
use | $15.8 million target raised in Rights Issue |
Strategic board and management appointments of Non-Executive Director, Simon | |
Wandke, and Chief Financial Officer, Ian Kirkham | |
Formal grant of the Muster Dam tenement received from the South Australian | |
Department for Energy and Mining | |
Native Title Agreement process commenced with the Ngadjuri Traditional Owners | |
Significant progress achieved in the Definitive Feasibility Study including: | |
o ~70% of Hatch processing plant studies complete | |
o Power, water, NPI, tailings and logistics components of study progressing | |
o Commencement of geotechnical investigations |
- Commencement of detailed mine design, schedule optimisation and equipment selection for open pit mining at Razorback
- Positive interim metallurgical testwork results announced post-quarter and additional testwork commissioned to assess the suitability of Razorback ores for premium DR-grade concentrates
personalOVERVIEW & POST-QUARTER ANNOUNCEMENT OF INTERIM METALLURGICAL RESULTS
During the quarter, the Razorback Iron Ore Project Definitive Feasibility Study ("DFS") was advanced across all major workstreams including mining, processing, tailings, power and logistics. The permitting
and approvals program - which encompasses environmental studies, mining and environmental licensing, land access negotiations, and Native Title Act processes - also achieved several important milestones
Forincluding the commencement of Native Title Agreement negotiations with the Ngadjuri Traditional Owners. These activities are detailed in the relevant sections of this report.
Subsequent to the quarter, Magnetite Mines announced interim metallurgical testwork results confirming the attainment of high-grade,low-impurity concentrates during bulk testing. To date, analysis incorporating the full flow sheet has produced concentrates of higher quality than the design specification of 67.5% iron and 4.5% Silica + Alumina, with one bulk sample producing 69.7% iron with 2.6% Silica + Alumina. The Company is encouraged by these interim results as they support the quality of iron ore product that the Razorback Project can produce. As announced on 21 July 2022, the Company will consequently undertake further assessments of the capability of its mineral resource base, which encompasses both the Razorback and Iron Peak deposits, to support the production of Direct Reduction
Magnetite Mines Limited | ABN: 34 108 102 432 | Suite 1, 22 Greenhill Road, Wayville, SA 5034 | | Page 1 |
email: info@magnetitemines.com| www.magnetitemines.com| Tel: +61 8 8427 0516 |
grade ("DR-grade") iron ore in material quantities and on a consistent basis over multiple decades. Because of their environmental and economic benefits, DR-grade products are priced at a significant premium to the 62% Fe fines benchmark index.
onlyDEFINITVE FEASIBILITY STUDY UPDATES Geology
usepersonal
ForMembers of the MGT Board and executive team at Razorback
Geological studies are ongoing following initial metallurgical and shallow infill drilling programs completed in the March quarter. These two drill programs provided laboratory samples for bulk metallurgical testwork and data to underpin resource classification updates given improvements in drilling density and data coverage. Samples were submitted to both local and foreign laboratories. Resource-related head grade and DTR analysis underway at Bureau Veritas laboratories will inform geological modelling and updated resource assumptions for the Iron Peak deposit.
Separate to the DFS, the Company completed a drone-based aeromagnetic geophysical survey over the Sister's Dam prospect, which is located ~38km east of Razorback. The scope of the survey was based on existing, low-resolution State surveys, which indicate a high relative magnetic response located under
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cover and well-developed apparent thickness, possibly as a result of isoclinal folding. Preliminary results have been received with geophysical processing to follow. The results of the survey will inform future exploration activities in the area which may underpin a resource expansion opportunity.
onlyMining
During the quarter, mining studies were progressed on several key fronts. Pit shell designs were completed and included interim stages designed to high grade in the early years of mine life and minimise cost in later years. Mine schedules were also prepared during the quarter and are now undergoing a final optimisation, focusing on the first ten years of mining.
useProcessing Plant
Processing plant design and engineering has progressed significantly, with roughly 70% of the study completed as at the end of June. Processing flow diagrams have been informed by metallurgical testwork completed to date at both laboratory bench and pilot scales. Interim testwork results,
announced mid-July, demonstrate that a high-grade,low-impurity concentrate can be produced from personalthe Project's ores. Results related to variable flotation and bulk flow sheet simulation, which
represent the final stages of the DFS testwork program, are pending. Changes made to the design of the processing plant indicate an increase to the power load list compared to the PFS design.
Analysis of the testwork results also suggests that the Project could potentially support Direct Reduction grade concentrate production, subject to further studies. The Company intends to undertake an additional testwork program to investigate this critical value adding opportunity to produce products which may achieve higher price premia and further align with a decarbonising iron and steel sector.
Infrastructure
Power
The expected increase in process plant power demand has led to a review of the transmission line, which Forwill likely include the consideration of a 275kV line. While the capital cost of the transmission line would
increase at this higher voltage, there would be a near-commensurate decrease in line losses.
A 275kV line could, in theory, support the energy requirements of the increased production scenarios detailed in the Expansion Study.
Camp
The location of the accommodation camp was confirmed during the quarter. The location is sufficiently clear of the mine area, conservation area, tailings storage facility and product haul road to negate the effects of noise and dust.
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Haul Road
Haul road related design work completed in the quarter included the finalisation of corner radii and road grade. Flood modelling was completed on the selected route, with the outputs being used to size culverts.
onlyRail siding
Design work for the siding, which is being progressed in tandem with the design of the haul road,
c mmenced in June. The Company and the Australian Rail Track Corporation (ARTC) have initiated the process to formalise a land access agreement for the siding and stockpile area that sits within the ARTC land boundary.
useTailings
Progress in tailings design and related studies was made in several areas. The Company determined the optimal location for the tailings storage facility (TSF), which will be used for the Mining Lease Application, with a second location to the Northeast of the process plant also identified as a long-term option, or for an
expansion.
personalFollowing the completion of testwork, the tailings settling rate, rheology, water recovery and pumping requirements are now at a far greater confidence level. Further, deposition design has incorporated the
outcomes of risk assessments into all aspects of design to minimise the possibility of breaches occurring.
Hydrogeology
Hydrogeological modelling in the form of flood modelling was undertaken during the quarter. This work aims to assess the impacts of inundation for a flooding event affecting the haul road access pathway and the plant area. Work completed to date, utilising high-resolution LIDAR data acquired earlier in the year, has been incorporated into the basis of design of road culverts.
Geotechnical investigations
ForA geotechnical test pitting program was completed across 48 project sites including sites along the haul r ad. The program has provided inputs required for cut and fill calculations and civil structural design elements related to the footings and foundations of project infrastructure.
ENVIRONMENTAL ASSESSMENTS & REGULATORY APPROVALS
Environmental characterisation and targeted survey efforts were materially progressed during the quarter, with early works commenced for selected impact assessment programs.
A detailed microbat survey was completed in April 2022 and followed an earlier survey in October 2021 to ascertain the potential for the federally listed Corben's Long-eared Bat to be present within the mining
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area. The survey demonstrated limited, quality habitat in the area, and no specimens were captured during the extensive trapping effort. As such, these results indicate that Project activities are unlikely to have a significant impact on this microbat species.
Other key activities in this quarter included:
only | | Seasonal groundwater sampling; |
| Receipt of draft baseline survey reports, including soil, noise and air quality (to be finalised in July | |
2022);
Commissioning of detailed ecology assessment for mine and infrastructure assessment as part of the impact assessment program;
Planning of groundwater and surface water modelling; and
Commissioning of detailed third party bore assessments to further enhance upcoming groundwater modelling.
useSTAKEHOLDER ENGAGEMENT & ESG Stakeholder Engagement and Land Access
The Company's early engagement program is focused on its relationship with the Ngadjuri Nation, State personalGovernment, local councils and landowners (holders of title, including pastoral and Crown leaseholders).
Our early engagement program has identified a key opportunity to work closely with the District Council of Peterborough on road infrastructure development. This collaborative effort aims to work through any use of council roads where appropriate as part of the site access and includes discussions on minor upgrades to support future use.
Land access negotiations for the properties covered by the intended Mining Lease area were significantly advanced in the quarter, while negotiations for land access to areas supporting the transmission line and haul road progressed in line with expectations.
Native Title
Following MGT's presentation to the Board of the Ngadjuri Nation Aboriginal Corporation (NNAC) in March 2022, the company has progressed its planning for Native Title negotiations and has confirmed its next
Forepresentation to the NNAC Board in July 2022. During the quarter, the Company prepared statutory notifications required under the SA Mining Act 1971, which are ready for submission following Consent Determination of the Ngadjuri Nation #2 Native Title Claim.
Cultural Heritage
Representatives from the Ngadjuri Nation have completed extensive baseline cultural heritage surveys over the Project area. In total, ~1,200ha of baseline surveys were completed in the quarter for a cumulative total of almost 2,500ha to date. The Company recognises this significant effort by the Ngadjuri heritage survey team, with their work building a detailed understanding of the intrinsic heritage
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Magnetite Mines Limited published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 00:07:49 UTC.