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- Iron ore miner Magnetite Mines (MGT) is on track to deliver a pre-feasibility study (PFS) for its flagship Razorback Iron Project before the end of FY21
- The company said in its latest quarterly report it has engaged some key PFS infrastructure collaborators over the March quarter
- At the same time, the company is busy updating the Razorback resource estimate based on geological modelling and analyses of historical core samples
- Magnetite spent just under $900,000 on exploration and other operating activities over the March quarter, takings its cash balance to around $4.16 million as of March 31
- At this rate of cash burn, the company has enough funds to last for just over one year until it will need some extra cash
- Magnetite was awarded the nearby Muster Dam tenement package by the South Australian government during the quarter and plants to begin work at the new tenement over the next few months
- Shares in Magnetite Mines are up 1.79 per cent in late-market trade to 5.7 cents each
Iron ore miner Magnetite Mines (MGT) is on track to deliver a pre-feasibility study (PFS) for its flagship Razorback Iron Project before the end of FY21.
The company said in its latest quarterly financial report, released this morning, that the development of the core project is on schedule, with key PFS infrastructure collaborators engaged over the March 2021 quarter.
At the same time, Magnetite is busy updating the resource estimate for the project based on recent geological modelling and extra data taken from the analysis of existing historic core samples.
The Razorback project lies in South Australia’s Braemar area, which Magnetite touts as Australia’s emerging iron ore mining region. According to the company, Razorback has a 3.9-billion-tonne JORC-compliant resource.
Magnetite said over the March quarter, it spent some time developing a mine schedule and hauling model for the project.
At the same time, Magnetite was awarded the nearby Muster Dam tenement package by the South Australian government during the quarter after what the company called a “competitive exploration tenement application process”.
Muster Dam holds a 1.5-billion inferred resource, and Magnetite said it plans to begin work at the project within the next quarter, depending on how quickly it can gain necessary regulatory approvals.
Taking a look at the company’s financials, Magnetite spent just under $900,000 on exploration and other operating activities over the March quarter, takings its cash balance to around $4.16 million as of March 31.
At this rate of spending, this means Magnetite has just over one year of funding available before it will need some more cash.
Magnetite Executive Chairman and CEO Peter Schubert said the company made some major progress towards becoming a “robust high-grade iron ore business” over the March quarter.
“The PFS, currently well-advanced, aims to arrive at a single go-forward option that provides a sound and compelling business case across the range of iron ore pricing scenarios,” Peter said.
“Importantly, the PFS scope envisages a capital-efficient, long-life mine producing an attractive high-grade iron ore product,” Peter said.
Shares in Magnetite Mines are up 1.79 per cent in late-market trade to 5.7 cents each. The company has a $161 million market cap.
