Magnum sees path to higher grades in US iron ore project

• Magnum Mining (MGU) has completed a five-year mining schedule for its Buena Vista Iron Project in Nevada
• The plan boasts higher ore grades
• SRK Consulting were instrumental in developing the schedule
• MGU has been trading at 3 cents at 11:30am AEDT

Magnum Mining & Exploration (ASX: MGU) has inked a new schedule for its Buena Vista Iron project, showcasing significant advancements.

A new comprehensive five-year plan, crafted in collaboration with industry leaders SRK Consulting, focuses on an accelerated mine development strategy.

The key highlight of the mining schedule outlines a pathway towards annual concentrate production of 800,000 tonnes.

Magnum’s strip ratio desirable

Impressively, the ore grade maintains an average of 29.1 per cent Fe over the five-year span, while the strip ratio averages a low 0.29.

The Scoping Study for the Buena Vista Iron Project originally envisioned an annual production rate of 1.6 million tonnes of high-grade magnetite concentrate.

However, the new mine schedule explores opportunities for a faster start-up, potentially leading to earlier cash flows by accessing higher-grade portions of the existing resource.

Technical method

To achieve a balanced approach between high grade and low strip ratio, SRK employed an algorithm for pit optimisation.

The optimised pit schedule yields ore grades ranging from 25.3 per cent to 37.1 per cent Fe, maintaining an average of 29.1 per cent Fe over the five-year period.

The strip ratio starts at 1.06 in the first year and progressively decreases to 0.01 in the final months.

As development progresses, Magnum Mining & Exploration maintains its focus on sustainable practices, aiming to capitalise on a first-mover advantage in supplying green pig iron to the US steel industry.

MGU was trading at 3 cents at 11:30am AEDT.