- Grange Resources (GRR) updates the market regarding a pre-feasibility study (PFS) assessing the potential for underground mining in the North Pit orebody
- The financial outcome of the PFS outlined that an underground mine is technically and economically feasible for North Pit
- Further, the company outlined a six million tonne per annum production rate with an underground mine life of more than 10 years
- Subject to board approval, Grange is expecting to begin working on a definitive feasibility study in 2022
- Shares in Grange are trading 0.71 per cent higher on the market at 71 cents
Grange Resources (GRR) has updated the market regarding a pre-feasibility study (PFS) assessing the potential for underground mining in the North Pit orebody.
The North Pit orebody is part of the Savage River Mine which lies in northwest Tasmania roughly 100 kilometres southwest of Burnie.
The financial outcome of the PFS outlined that an underground mine is technically and economically feasible for North Pit.
Grange outlined a potential six million tonne per annum underground mine with a mine life of more than 10 years which the company has the potential to increase by exploring the resource at depth.
Further, the PFS demonstrated ore continuity at depth with a 30 per cent increase in the mineral resource.
The underground production life has been estimated at 25 million tonnes of magnetite concentrate.
Production requires a further $160 million investment and underground mining costs range between $15 to $22 per tonne of ore.
CEO Honglin Zhao commented on the PFS.
“The magnetite deposit at Savage River continues to deliver high-quality ore. This successful pre-feasibility study provides us with continued confidence in the long-term future of the Tasmanian operations,” Mr Zhao said.
“The study provides justification for our view that the Underground is technically and commercially viable.”
The results from the PFS are now being assessed as part of an enterprise optimisation process which is used to determine the optimum transition point and timing to move from open-pit to underground mining.
It also provides the scope for further evaluation and the definitive feasibility study in 2022.
Shares in Grange were trading 0.71 per cent higher on the market at 71 cents at 1:30 pm AEDT.