Magnetite Mines’ imminent Pre-Feasibility Study has been substantially boosted by the release of an ore reserve sufficient for 30-year plus mine life at its Razorback iron ore project.

The ore reserve of 472.7 million tonnes — with a mass recovery of 14.5%, or about 68.5Mt of 67.5% iron ore concentrate – has been deemed to be economically viable, meaning it can be used to value the project in South Australia with a reasonable degree of confidence.

Razorback’s ability to produce a premium iron ore product is also increasingly important, given the substantial $US90 spread between 58% iron ore and premium 65% iron ore.

Magnetite Mines’ (ASX:MGT) chairman and chief executive officer Peter Schubert said today’s update is a result of the “culmination of many months of meticulous and dedicated work by our team, and is an important validating step”.

Importantly, the ore reserve effectively forms the basis for the PFS, which is largely complete and undergoing final quality control checks for the integrity and accuracy of the financial model.

Speaking to Stockhead, technical director Mark Eames said that while an ore reserve is not essential for success, it provides investors with more detailed information upon which to make a lower risk investment decision.

This also speaks to the company’s dedication to stick to a methodical, industry best practice development process.

Magnetite Mines is already funded to accelerate work on additional programs to accelerate the project’s development after it completed a $7.5m options conversion earlier this month.

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