IMX Resources reaches 500000 tonnes shipped ore milestone

Tuesday, 05 Jul 2011
IMX Resources has loaded the next iron ore shipment in Port Adelaide which has pushed the company to the 500,000 tonne shipped milestone from the Cairn Hill mine in just seven months after shipping operations kicked off in December 2010.

As the Cairn Hill project has ramped up the unit costs have reduced with the May costs running at USD 84.50 per tonne FOB and importantly, the company has forecast further reductions of costs as the project operations are optimized.

These decreases are to around USD 68 per tonne FOB, and after copper by-product credits to around USD 39 per tonne FOB. The project is now exporting two ships per month for around 145,000 tonnes, with seven shipments so far made through Port Adelaide.

The ore is from the first phase of the Cairn Hill operation, which is expected to deliver 7.9 million tonnes from two pits, generating around AUD 250 million of revenue per annum at current prices. The in-pit resources at the 1.7 million tonne annual dig and ship operating is, 7.9 million tonnes at 50.5% iron, 0.39% copper which currently represents a five year mine life.

The project is strategically located 14 kilometres to the Stuart Highway from a new access road, and 55 kilometres by road to Coober Pedy. Access to Port Adelaide is 879 kilometres with Mount Bonython 620 kilometres.

Cairn Hill phase two - Maiden resource imminent

Cairn Hill phase two has the potential for a low capital and operating cost project with the company looking to fast track development leveraging off existing approvals and infrastructure.

Mr Duncan McBain managing director said the development work for phase two of the project was proceeding as planned. He said that design work for the dry magnetic separation plant is well advanced and mine planning is about to commence.”

He added that “The logistics for the transport and export of the ore are mainly in place and the work has commenced for the modification of the existing Mining and Rehabilitation Plan."

The phase two metrics include
1. Production 0.8 million tonnes per annum to 1.2 million tonnes per annum first half of 2012;
2. Target maiden resource mid 2011 at 8Mt to 12Mt at 45% to 50% iron
3. Capital USD 5 to USD 10 million with operating costs estimated at around USD 70 per tonne FOB. (sourced from ProactiveInvestors)