Magnum Mining and Exploration (ASX:MGU) has had the entire bulk sample from its Buena Vista Iron Project in Nevada put to the metallurgical test – and the results haven’t disappointed.
That 432kg sample produced magnetite concentrate of 69% Fe with a 45% recovery – grades that exceed the benchmark 62% Fe fines price.
“While ultimately the prices received will depend on offtake agreements, the contemporary spot market, and future economic conditions, this differential has been relatively consistent over a long time,” MGU announced to the market.
But the price differential for a higher grade magnetite is quite significant – it attracts a premium of 75 per cent above the benchmark fines iron price.
And MD Neil Goodman says that’s not the end of the process, he still believes the concentrate iron grade has the potential to be further improved.
“The Buena Vista Iron Project continues to prove that it can deliver an exceptionally high grade DRI (Direct Reduced Iron) product,” he said.
“This bulk test work confirms that this premium product can be readily produced using standard flow sheet designs at a production scale.
“The concentrate iron grade can be further increased – and deleterious element content decreased – by passing the material through a floatation circuit.
“The comparative economics of this is being considered before a decision is made on this additional processing stage. With the DRI (Direct Reduced Iron) grades already achieved it is not required, but may increase the premium paid for the product.”
How the sample was tested
Testing was done by the Perth-based laboratory ALS using an industry standard flowsheet, including passing it through a series of low intensity magnetic separators (LIMS) to grind it prior to separation of the magnetite particles.
The concentrate will now be made available to potential end users for their testing.
The news today backs up the 68.3% Fe previously achieved and announced to the market on June 7. At that time a 200kg sample from Buena Vista was tested by ALS, to mimic the long run head grade based on a five-year mine schedule from the initial mining area.
The project’s Scoping Study was completed last year.
The sample consisted of broken ore collected from existing stockpiles. They were selected from 20-30 centimetres below the surface so there could be no contamination. An pXRF geochemical analyser and a magnetic susceptibility meter was used to ensure the samples grades averaged those defined in Buena Vista’s initial mining are pit model.
Funding underway
Magnum Mining and Exploration had over a million dollars in cash and equivalents at hand at the end of June. It has an agreement with V Capital Consulting and 2×1.Digital Private to raise at least US$210 million to fund its planned green pig iron plant in Saudi Arabia.
Magnum has been trading at 1.4 cents.