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- CZR Resources (CZR) is expecting to complete its pre-feasibility study (PFS) for the Robe Mesa Iron Ore Project in the Pilbara this December
- The company has been in talks with leading Asian steel mills and trading houses on the acceptability of the product and potential pricing costs
- These conversations included talks with customers who already buy-up nearly 56 per cent of iron ore products from Australia
- CZR Resources says the feedback from customers has been positive, showing there is strong demand in the market for lower-grade ore
- On the market this afternoon, CZR is up 28.6 per cent and is trading for 1.8 cents per share
CZR Resources (CZR) is expecting to complete its pre-feasibility study (PFS) in December for its Robe Mesa Iron Ore Project in the Pilbara.
The company has been in talks with leading Asian steel mills and trading houses on the acceptability of the product and cost points.
These discussions involve potential customers who are already buyers of approximately 56 per cent iron products from Australia.
CZR says the feedback from customers has been positive, showing there is strong demand in the market for lower-grade ore.
The product discount rate is 56 per cent iron ore, which is the lowest since 2016, selling for more than US$100 (approx. A$141) dry metric tonnes, based on cost and freight.
Due to the strength of the iron ore market, CZR is looking into a direct shipping ore (DSO) mining operation of 1.5 to 2.5 million tonnes per annum. The DSO will include road trains to carry the ore 400 kilometres from Robe Mesa to Port Headland.
Closer port options that are 100 kilometres from the project include between Onslow and Dampier, which presents an opportunity to reduce the haulage distance, as other companies look to develop new ports along the coastline.
“The PFS is focused on a simple, low capex DSO iron-ore mine that aims to maximise the use of existing infrastructure and a trucking model for transport of product to port,” the company announced.
On the market this afternoon, CZR is up 28.6 per cent and is trading for 1.8 cents per share at 2:11 pm AEDT.
