/ RAZORBACK HIGH GRADE IRON ORE CONCENTRATE PROJECT

3.9 billion tonnes (JORC 2012) of iron ore
Over 110 kilometres of unexplored strike
1,722 km2 of surrounding tenements
100% owned by Magnetite Mines Limited

The Razorback High Grade Iron Ore Concentrate Project is an iron ore project in the western portion of the Braemar and is wholly owned and operated by Magnetite Mines Limited.

The Project is 250 km northeast of Adelaide, South Australia and is located central to existing infrastructure.

The Project consists of three main ore bodies, Razorback is the primary deposit followed by Iron Peak and Ironback Hill. Together these deposits constitute 3.9 Billion Tonnes of JORC 2012 Inferred to Indicated resources (see ASX Announcements on 12/11/18 & 20/11/18).

Since 2009, Magnetite Mines has invested AUD $35 million in the project by carrying out over 52,000 metres of drilling, completing a positive pre-feasibility study, and subsequent optimisation of that study.

  • High tonnage iron ore mineralisation

     

    The Razorback High Grade Iron Ore Concentrate Project is a high tonne project in the western portion of the Braemar.

    The Braemar is located 250 kilometres northeast of Adelaide, South Australia.

    The Razorback High Grade Iron Ore Concentrate 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 Project (JORC 2012) and Ironback Hill (JORC 2012) Resource estimates, the Company’s total Mineral Resources inventory in the Braemar stands at 3.9 billion tonnes at 19.7%Fe head grade.

    The Ironback Hill mineral resource consists of 1.2 billion tonnes of inferred iron ore with a head grade of 21% Fe.

    These combined deposits make up 3.919 billion tonnes of JORC 2012 inferred to indicated iron ore.

    The latest JORC 2012 compliant iron resource completed in November 2018 is as follows:

    Prospect
    JORC Resource
    Classification
    Million Tonnes
    eDTR%
    Fe%
    SiO2%
    Al2O3
    P%
    Razorback
    Indicated
    833
    16
    21.4
    45.2
    7.3
    0.2
    Inferred
    1532
    14.6
    16.1
    50.2
    8.5
    0.17
    Iron Peak
    Indicated
    203
    16.8
    20
    45
    7.67
    0.18
    Inferred
    163
    15.6
    17.1
    46.7
    8
    0.16
    Total
    Mineral Resource
    2,732
    15.3
    18.2
    48.1
    8
    0.18

    see ASX Announcement 12 November 2018

     

    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 Announcements on 20 November 2018


    Simplified Geology of the Razorback Area
  • 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. ASX Media Release 16/09/2016

    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.


    Sample of high grade concentrate produced from Razorback ore
  • 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 Mpa
  • 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 : 0.24 for life of mine.


    Massive outcropping at Razorback Ridge
  • 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.

  • Located in a region rich in Infrastructure

     

    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 capsize 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.

    CU-River Mining is expecting to begin export operations from Port Augusta in 2021.