- Strike Resources (SRK) is advancing the development of its Paulsens East iron ore mine in WA’s Pilbara region
- Construction has officially commenced of the 18-kilometre haul road to connect the mine to the Nanutarra road which will create a link to transport direct shipping ore (DSO)
- In about four weeks’ time, Strike expects mining will begin at Paulsens East to create the first stockpiles of lump DSO for shipment
- Managing Director William Johnson says that with iron ore prices continuing to strengthen, “the timing could not be better to bring the Pilbara’s next iron ore mine into production”
- Company shares are up 4.17 per cent to trade at 12.5 cents
Strike Resources (SRK) has begun construction on the 18-kilometre haul road to connect the Paulsens East iron ore mine to the public Nanutarra road in WA’s Pilbara region.
The construction work marks the first step of the stage one production development of the Paulsens East mine.
Strike expects the road will take between 10 and 12 weeks to build and will use the time to finalise any outstanding contracts with key suppliers and preferred contractors for mining and truck haulage.
In about four weeks’ time, Strike expects mining will begin at Paulsens East to create the first stockpiles of lump direct shipping ore (DSO) for shipment.
Once the road is completed in the next three months, four trailer road-trains will transport DSO from the mine to Nanutarra road. Trucks will then travel west along Nanutarra road before heading north to Port Hedland for export.
Managing Director William Johnson said he was pleased to have mobilised to the start to commence construction.
“This is a very exciting time for the company as development towards first ore on ship is now underway,” he said.
The current benchmark price for iron ore is over US$150 (A$207) per tonne which suggests the potential for attractive near term operating margins for shipments from Paulsens East, the company said.
“With iron ore prices continuing to strengthen, the timing could not be better to bring the Pilbara’s next iron ore mine into production.”
Company shares were up 4.17 per cent to trade at 12.5 cents by the end of the day.