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Magnetite Mines
    • Home
    • About Us
      • Company Overview
      • Board of Directors
      • Executive Team
      • Corporate Governance
      • ESG
    • Projects
      • Razorback Iron Ore Project
      • Muster Dam Iron Ore Project
      • Global Drivers For High Grade Iron Ore
    • Investors
      • Investor Dashboard
      • ASX Announcements
      • Company Reports
      • Investor Presentations
      • Share Registry
      • Videos
    • Insights
    • Contact Us

Razorback Iron Ore Project

 

Overview

The Razorback Iron Ore Project (Project) is a magnetite iron ore deposit capable of producing a high grade iron ore concentrate product for use in steel production. The Project is 100% owned and operated by the ASX listed Magnetite Mines Limited (ASX: MGT).

With a defined 2012 JORC resource of 4.2 Billion tonnes of iron ore, the Razorback Iron Ore Project consists of two very large magnetite iron ore deposits, the Razorback and the Ironback Hill deposits hosted in the Braemar Iron Formation. It is located 240 NE of Adelaide, South Australia, near the regional town of Yunta in arid, low intensity pastoral country.

The large resource base is held within five 100% owned and operated tenements totalling 1,520 square kilometres. The Project is situated 45km from open-user rail, 120km from the power grid and 200km to existing deep water ports.

The Pre-Feasibility Study completed in July 2021 confirmed the opportunity for a high return, long life, initial development of the large scale Razorback resource which leverages the advantages of resource scale, low stripping ratio, available infrastructure, low cost sustainable power and leading product quality.

Pre-Feasibility Study (PFS)

The PFS reviewed a range of options based on the inherent advantages of the Project’s resource to develop an optimised, go-forward scope:

Mining and geology

Extensive mining studies have confirmed feasible schedules close to average resource grade underpinning the 473Mt Probable Ore Reserve. A gridded geological model confirmed the potential grade and recovery uplift from selective mining, which is the focus of DFS geological and geo-metallurgical investigations.

Metallurgy and process plant estimates

The Company has generated a preferred flowsheet and plant layout which has significant advantages in efficiency and separation over the conventional configuration used in the scoping study estimates. The inclusion of fine grinding and flotation allows efficient production of high product quality concentrate. The final scale of the preferred go-forward option is plant feed of approximately 15.5Mtpapa with ability to process up to 20% DTR with a capacity of up to 3.1Mtpa concentrate.

Power

The Company has looked at a range of power supply arrangements, investigating a range of generating sources and possible transmission mechanisms. The go-forward scope is based on a 132KV line connecting to the existing South Australian power grid, with further work to be undertaken around sourcing of the electricity during DFS as we work towards a low emissions footprint for the project.

Transport

A range of transport options were reviewed, confirming that there are a range of low capital and operating cost options available using existing transport networks.

High tonnage iron ore mineralisation

The Razorback Iron Ore  Project consists of three main ore bodies. Razorback Ridge is the primary deposit, Iron Peak is located 5 kilometres east of Razorback Ridge and Ironback Hill is located 12 kilometres south-southwest.

Combining the Razorback Iron Ore Project (JORC 2012) and Ironback Hill (JORC 2012) Resource estimates, the Mineral Resources inventory stands at 4.2 billion tonnes.

Geology

10km continuum of Iron Prospects

100km Braemar Formation strike untested

Simple dipping tabular body, outcropping

Very consistent over kilometres of strike

Stratigraphy

Whitten (1970) – Braemar 7 sedimentary packages. Units A-G

Total thickness 480-780m

Units A, B, D and G are economic interest

Unit B forms prominent Razorback Ridge

The latest JORC 2012 compliant iron resource is outlined in the table below:

The latest JORC 2012 compliant iron resource completed in May 2021 is as follows: 
Classification
Million Tonnes (Mt, dry)
Mass Rec (eDTR%)
Fe%
SiO2%
Al2O3
P%
LOI%
Magnetite%
Indicated 1,500 15.6 18.5 47.9 8.0 0.18 5.4 15.0
Inferred 1,500 16.0 18.0 48.3 8.2 0.18 5.5 15.9
Total
3,000
15.8
18.2
48.1
8.1
0.18
5.5
15.5

see ASX Announcement 24/05/2021

Prospect
JORC Resource Classification
Million Tonnes
Fe%
SiO2%
Al2O3
P%
Ironback Hill Inferred 1,187 23.2 44.1 7.2 0.21

see ASX Announcement 20/11/2018

Sample of Razorback high grade concentrate 

Able to produce 68.8% Fe concentrates with low deleterious elements

Magnetite ores require initial crushing and screening and then undergo a second stage of processing that exploits the magnetic properties of the ore to produce a concentrate.

Iron ore from Razorback Ridge can produce a concentrate of 68.8% Fe.

When compared to haematite DSO, magnetite concentrates contain much lower levels of impurities, such as phosphorous, sulphur and aluminium.

Iron ore concentrates derived from magnetite are a premium product and attract higher prices from steelmakers.

The company is targeting 67.5 to 68.5% Fe concentrates for the life of the mine.

See ASX Announcement 13/09/2016

 

Razorback Iron Project indicative product specifications*
  Recovery  Fe%  SiO2%  Al2O3%  P%  S% 
Magnetite product 16% 67.5 – 68.5% 3.9 – 4.6% 0.4 – 0.5% 0.02% 0.003%

*Indicative concentrate specifications are based on prior metallurgical testwork and Davis Tube Recovery testwork. Metallurgical and process design studies as completed by Hatch have assumed a 67.5% Fe concentrate product for the AACE Class 4 and 5 process designs. A 68.5% Fe product has been demonstrated in previous bulk metallurgical testwork and may be achievable at processing plant scales pending further testwork.

see ASX Announcement 05/07/2021

Soft ore relative to traditional BIF magnetite mineralisation

Magnetite ores from The Braemar are unusually soft in comparison to ore from other iron ore producing regions in Australia and around the world.

The Braemar mineralogy is unlike that of banded ironstones seen in the Pilbara and Mid-West regions of Western Australia. Braemar sedimentary rocks are not made up of fine-grained chert as they are in WA, but rather magnetite-bearing siltstones.

Razorback’s low rock hardness and abrasion index offers substantial cost advantages by enabling grinding to finer grain sizes without incurring significant additional energy and equipment maintenance inputs.

Razorback Iron Ore
Typical Pilbara Ore
Bond work index (BWi)
9 kW/t
> 24 kW/t
Crushing work index (CWi)
10 kw/t
> 16 kW/t
Uniaxial Compressive strength (UCS)
80 Mpa
> 200 Mp

Negligible overburden resulting in a very low strip ratio

Overburden is the rock and soil that overlies the mineral deposit and typically requires removal prior to open cut mines. The amount of overburden is a major determinant of a mines strip ratio. The strip ratio is the ratio of waste removed to ore recovered.

Razorback Ridge is the most prominent outcrop of ironstone in The Braemar resulting in minimal to no overburden.

The current mine plan has determined the stripping ratio to be just 1 : 0.16 for life of mine.

Long-term Supply Security

The world’s annual crude steel production grew from around 28 million tonnes in 1900 to more than 1,800 million tonnes in 2018.

This growth has not been consistent. The first major growth period lasted around 30 years. It commenced with the post-WWII economic/reconstruction boom and ended with the 1970s recession.

The second growth period has primarily been driven by the mass urbanisation of China’s population since 2000. In 2000, 19.6 percent of China’s population lived in urban areas. Today, that figure is around 58 percent and rising.

To support continued global urbanisation, global steelmakers need a reliable supply of high grade, low impurity feedstock in a politically stable jurisdiction.

As confirmed by the PFS, the Razorback High Grade Iron Ore Concentrate Project can supply 8.2 million tonnes per year for at least 25 years.

Established and supportive mining jurisdiction

The Australian mining industry was born in South Australia. In 1841, only 5 years after the colony of South Australia was established, silver and lead were found at Glen Osmond. This lead to the establishment of the Wheal Gawler and Wheal Watkins mines.

It was the beginning of a mining rush in South Australia made most notable by the copper mines of Burra, Kapunda and Moonta-Wallaroo. In the mid-19th century, South Australia’s copper and lead exports alone earned more than the wool and wheat exports of the entire nation.

The Australian iron ore industry was also born in South Australia. Iron ore has been shipped from the Middleback Ranges near Whyalla since 1903, and steel since 1941.

Today, South Australia is a better position than ever to work with potential domestic and/or global partners requiring iron ore and/or its derivatives.

In December 2017, the Government of South Australia launched South Australia’s Magnetite Strategy. The Strategy encourages government to work with industry and other stakeholders to grow our emerging sector, to create jobs and economic prosperity for all South Australians.

Located in a region rich in Infrastructure

  • Power

    • 132kV Transmission Line connecting to grid at Robertstown.
    • Access to competitive energy with high renewables content.
    • Built under long term Transmission Service Tariff – no upfront capex.
  • Transport Infrastructure
    • 50km purpose-built private all-weather haul road and rail siding – vicinity Yunta 5.
    • Existing open access heavy freight network – 25t axle loads.
    • Existing iron ore ports (i.e Whyalla) with capacity

    Roads

    Roads in the area are a combination of national highways, state arterial roads and local roads. The Barrier Highway is part of the national freight network and is located just  40 kilometres from Razorback. It carries approximately 1,000 vehicles per day of which approximately 20 percent are road trains carrying freight.

    Rail

    There is an “open access” rail line located 40 kilometres from Razorback. It consists of the standard gauge rail links between Broken Hill and Crystal Brook, on to Adelaide south of Crystal Brook and on to Port Augusta north of Crystal Brook.

    These corridors form part of the Defined Interstate Rail Network (DIRN) and are owned and operated by the Australian Rail Track Corporation (ARTC). ARTC is a statutory corporation owned by the Government of Australia.  The rail line can carry 1,800 metre trains with 25 tonne axle loads and have an 80km/h speed limit.

    The section between Broken Hill and Crystal Brook is currently estimated to have 12mtpa of available capacity for additional volumes.

    Ports

    The Whyalla port – which is owned by SIMEC Mining (a member of the global business bloc, GFG Alliance) – currently has excess available capacity and potential for further expansion – could provide an opportunity for the export of iron ore from Razorback.

    Port Pirie’s existing port facilities are open access and are operated by Flinders Ports Pty Ltd who manage shipping, maintain port, channel, wharfs etc.

    Port Pirie is effectively located on a river with the overall shipping channel into the port being approximately 9 nautical miles in length with a channel depth of 6.4 metres and 90m wide.

    Currently approximately 100 handymax ships use the port each year. The cargo is predominately zinc and lead concentrates and also imported concentrates, coal and other products to the smelter in Port Pirie

    Expansion on the western (developed) side of the port is limited due to the road/rail interactions through the city. A transhipping solution involving the use of the eastern side is an economically attractive and simple solution.

    A new $250 million port facility is proposed to be built at Port Augusta.

    CU-River Mining Australia is planning to transform a 1,068 hectare site into a new bulk commodity and transhipment port facility that will have an initial capacity of approximately 15Mtpa with the intention to increase capacity to 50Mtpa in the future.

    The iron ore products will be loaded onto barges at the port and then sailed to deeper waters of the Spencer Gulf to be unloaded on to capesize vessels.

    The project site is near a 5-kilometre rail balloon loop and unloading systems, which makes it an ideal location for a new port facility.

  • Water

    Water is required for processing and mining activities at the Razorback Iron Project. The Project is in an isolated region of South Australia where rainfall is significantly less than evapotranspiration rates. Water demand is primarily based on compensating for the water loss that occurs through the retention of moisture in the process plant tailings. Studies assessing the availability of ground water near or adjacent to proposed mining activities at the Project have been undertaken by Eco Logical Australia and Water Technology.

    Based on a wet tailings TSF and wet processing plant a total raw water supply is estimated at 4.8 to 5.6 Giga litres per year for the Mining Cases. Together with assumed potable water and mining related water usage a total of 5 to 5.8 giga litres per year have been assumed for the Mining Cases.

    Razorback Iron Project Water Supply Options
    Water Demand  Reference Case

    Estimate 

    Optimised Cases (incl. Ore Sorting)
    Process Water  4.8  GL/a 5.6  GL/a
    Potable Water  0.1  GL/a 0.1  GL/a
    Mining and Dust Control  0.1  GL/a 0.1  GL/a
    TOTAL  5  GL/a  5.8  GL/a 

     

    A number of water supply options have been investigated since 2011. Recently Eco Logical Australia and Water Technology were engaged to identify suitable groundwater targets.  Eco Logical Australia undertook a review of past hydrogeological assessments and bore data available within the tenement package area. The study identified a total of 5 areas for prospective bore fields related to:

    • Paleoproterozoic Adelaide Geosyncline fractured rock aquifer;
    • Neogene fluvial sediments associated with Manunda Creek; and
    • Tertiary-age Murray Basin sedimentary deposits

     

    Regional groundwater resources have been modelled, targeting a minimum of 10 GL/a (cumulatively) at approximately 6000 mg/l TDS (well above the WHO potable water limit of 1200 mg/l TDS and at the higher end of sustainable stock palatability). Two priority areas have been identified for further drill testing to define aquifer quality, volume and sustainability of supply. Fifteen test production bore locations have been identified within the two priority areas, with twelve of these to be the subject of groundwater exploration drilling. A drill programme to test the aquifers has been formulated and is planned for commencement in Q3 2021. The environmental and stakeholder impacts of any potential bore fields will be defined and management strategies proposed as part of ongoing environmental impact assessment-related testwork.

    In addition to the above studies, hydrology and hydrogeological specialists Water Technology identified potential targets for 5, 10 and 20 GL/a water supply options. The Water Technology study identified the possibility of sustainable yields of 0.05 – 9.0 GL/a within 15km of the proposed mine, and 10 to 20 GL/a water supplies at distances greater than 40km from the mine site. The study completed by Water Technology concluded that hydrogeological options have the potential to supply 5 GL/a.

  • Approvals

    Advancing Project Approvals and Access

    Area Status Upcoming Activities
    Approvals SA Government approvals pathway confirmed, with supportive regulator (low jurisdictional risk).

    SA Government consultation underway

    Preparation of approvals documentation

    Targeted approval award – 2023.

    Broad and targeted community engagement.

    Baseline Environmental Studies Baseline environmental studies well progressed. Limited potential for listed flora, fauna. Characterisation of waste rock, tailings non-acid forming. Completion of baseline environmental studies – 2021/22.

    Optimisation of non-mining infrastructure location to minimise footprint / impact.

    Land Access Early cultural heritage assessment programs commissioned with Ngadjuri Nation. Commencement of agreement-making process with Ngadjuri Nation to reflect / respect Native Title rights. Land access negotiations with landowners and lessees.
Magnetite
info@magnetitemines.com
+61 8 8427 0516

1st floor
22 Greenhill Road
Wayville SA 5034 Australia

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