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Fenix Resources (ASX:FEX) hits milestone production rate from Iron Ridge, WA

Materials
ASX:FEX      MCAP $201.4M
10 March 2021 11:50 (AEST)

Fenix Resources (FEX) has ramped-up iron ore production at its flagship Iron Ridge mine in Western Australia to a rate of 1.25 million tonnes (Mt) per year.

The junior miner kicked off production at the project in December 2020, with its first iron ore shipment leaving the Port of Geraldton on February 19, 2021, carrying just over 37,000 wet metric tonnes (wmt) of cargo.

However, Fenix has a four-year export deal with WA’s Mid West Ports Authority (MWPA) under which it can ship 1.25 Mt of iron ore per year. As such, this rate of production has always been the goal for the Iron Ridge mine.

Today, Fenix reached this milestone production rate one month ahead of schedule.

The company said for the first eight days of March, road haulage from Iron Ridge to a port storage facility in Geraldton totalled 28,653 wmt of product, which exceeds the 1.25-Mt-per-year rate.

This means Fenix can now schedule two bulk shipments of around 60,000 wmt of product per month for the “foreseeable future”, according to the company.

“We have built a sustainable iron ore export business in a short space of time and have done so with due respect for the heritage value of the area around Iron Ridge, the environment and the health and well-being of our people,” Managing Director Rob Brierley said.

So far, Fenix has already sold 100,000 wmt of iron ore lumps and fines from Iron Ridge. Two more ships are booked for loading on or around March 18 and March 28.

The company has 50,000 tonnes of iron ore product stocked at Geraldton port, with 25,000 tonnes of crushed ore and 40,000 tonnes of run-of-mine ore on-site at Iron Ridge.

Shares in Fenix Resources opened green this morning but have since retreated to trade 2.17 per cent lower at 22 cents each at 11:10 am AEDT.

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