- CZR Resources (CZR) completes the acquisition of a key iron ore tenement from Fortescue Metals Group (FMG) in the Pilbara region of Western Australia
- The tenement lies south of Rio Tinto’s (RIO) Mesa F iron ore project and next to CZR’s P529 deposit
- The P529 mineral resource contains 4.2 million tonnes at 53 per cent iron
- CZR has now consolidated a 1.1-kilometre strike length of the P529 deposit, five kilometres from its Robe Mesa project, with its mineral resource sitting at 45.2 million tonnes at 56 per cent iron
- Shares in CZR are trading at 20 cents at 2:12 pm AEDT
CZR Resources (CZR) has completed the acquisition of a key iron ore tenement from Fortescue Metals Group (FMG) in the Pilbara region of Western Australia.
The tenement lies to the south of Rio Tinto’s (RIO) Mesa F iron ore project, contiguous with CZR’s P529 deposit.
The acquisition means that CZR now has tenements and resources to the north and south of Rio’s project in the Pilbara.
The P529 mineral resource contains 4.2 million tonnes at 53 per cent iron.
Following the acquisition, CZR has now consolidated a 1.1-kilometre strike length of the P529 deposit, just five kilometres from its Robe Mesa iron ore project.
CZR Managing Director Stefan Murphy said the tenement opened the door for further growth potential.
“As a result, we have significant scope to continue growing the resources either side of Mesa F while opening up the possibility of creating additional value through our proposed supply chain to the Port of Ashburton and opportunities with other miners and developers close to our Robe Mesa project,” Mr Murphy said.
CZR confirmed it would soon commence drilling on the higher-grade zone of the P529 deposit and was currently completing its definitive feasibility study (DFS) for Robe Mesa.
Robe Mesa’s mineral resource sits at 45.2 million tonnes at 56 per cent iron, with an update to be released shortly, according to the company.
The acquisition includes a CZR cash payment of $150,000 along with 3.3 million CZR shares and one per cent FOB revenue royalty to FMG for to future production from the new area, excluding the Robe Mesa deposit.
Shares in CZR were trading at 20 cents at 2:12 pm AEDT.