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- Magnum Mining and Exploration (MGU) completes a “positive” scoping study for its proposed Buena Vista iron project in Nevada, USA
- The study underscores the technical and economic viability of the project, with a focus on the mining and beneficiation of magnetite ores
- The project will utilise Buena Vista’s 232Mt at 22.6 per cent DRI-grade indicated and inferred resources
- Magnum believes the market for DRI shows promise
- MGU last traded at 3.3 cents
Magnum Mining and Exploration (MGU) has completed a “positive” scoping study for its proposed Buena Vista iron project in Nevada, USA.
The company announced its study sits at a more than 35 per cent accuracy level.
The scoping study underscores the technical and economic viability of the project, bolstering prospects for future development, with a focus on mining and beneficiation of magnetite ores to direct reduction iron-grade (DRI) concentrate.
The study looked at producing high-grade DRI concentrate through a proposed production rate of up to 1.6 million tonnes per annum over a 25-year life-of-mine.
The project will utilise Buena Vista’s 232 million tonnes at 22.6 per cent DRI-grade indicated and inferred resources.
Additionally, the study serves as a preliminary assessment of economic potential, However, further evaluations and comprehensive studies are needed to ascertain ore reserves and ensure a robust economic development case.
For the envisioned outcomes to materialise, estimated funding of around US$280 million (A$433 million) could be required, and the company is exploring the possibility of alternative strategies, such as partial sales, joint ventures, or other value realisation approaches.
As the company progresses towards its pre-feasibility study, the project’s potential contribution to the iron industry remains an area of keen interest.
There’s a growing demand for DRI-grade material in the US steel industry. This demand is being driven by the industry’s commitment to reducing emissions according to the Paris Agreement.
Magnum recently made a preliminary agreement (MOU) with Mitsubishi. This agreement could lead to a deal where Magnum supplies high-grade magnetite concentrate to Mitsubishi in the United States. In saying that, there’s no guarantee of a final agreement.
MGU last traded at 3.3 cents.
