Centrex Metals has announced a 54.5 million tonne indicated mineral resource at the Koppio deposit within its Fusion magnetite iron project in South Australia’s Eyre Peninsula. The deposit’s inventory has grown by 34% to a combined inferred and indicated resource of 176.3 million tonnes. Further drilling at the site this year is expected to convert more of the mineral resources to the indicated category.
The milestone comes as the companies behind the joint venture, Centrex and Wuhan Iron and Steel, push ahead with an Aus$45 million definitive feasibility study to establish Fusion’s commercial potential. The study is expected to be completed in early 2013 and is based on an annual production schedule of between 5 and 10 million tonnes.
The maiden indicated mineral resource is part of an overall upgrade to Fusion’s mineral resource estimate to 499 million tonnes, based on results from the ongoing 108,000 metre drill program at the site.
Fusion is about 35km north of Port Lincoln in the southern end of the Eyre Peninsula. It is made up of several prospective magnetite deposits spanning a 50km anomalous magnetic BIF trend. Centrex wants to establish a centralized processing facility to access all deposits within the project area and transport ore 40km northeast via a slurry pipeline to Port Spencer for export.
In March, Centrex completed a scoping study at the Fusion site and the associated nearby Port Spencer facility proposal which includes construction of a 515 metre jetty and a ship loader with hourly capacity of 5000 tonnes, road works and power supply. Centrex says users of the port would provide their own dewatering and storage infrastructure.