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- Magnum Mining and Exploration (ASX:MGU) is seeking to produce iron ore from a brownfield mine site in Nevada
- The company’s acreage used to be owned by US Steel
- Brokerage firm Arrowhead has recently kicked off client coverage of Magnum Mining
- Rail designs are the first step of the process
- Shares last traded at 2.4 cents
Magnum Mining (ASX:MGU) has revealed logistics assessments are underway pertaining to its Buena Vista iron ore project in the US.
Magnum inked an MOU with Anglo American earlier this year regarding the project with that heavyweight keeping an eye on progress.
In the most recent quarter, the company also saw its projected ore output double.
With that in the background, Magnum is now turning its attention towards the buildout of rail infrastructure on-site to facilitate optimal haulage and transport.
Negotiations are currently focused on choosing the optimal location for a rail terminal facility and which lands are available to the company.
Colado the preferred site
So far, Magnum is looking at two locations: Colado, some 41 kilometres from site, and Huxley, further out at 65 kilometres.
The company owns land at both locations but is currently favouring Colado.
The company said on Friday negotiations to access Colado, in particular, have “begun”.
Magnum also maintains conversations with rail providers on the ins and outs of building new train tracks in and around existing systems.
Truck routes also on cards
As for trains, so too is for trucks.
Magnum is eyeing the optimal routes to haul magnetite concentrates further down the line in operations.
Magnum is weighing up the costs of upgrading roads it needs, as well as studying local traffic at Huxley.
“Haul trucks may need to cross an interstate highway if an alternative method of crossing is not implemented,” the company wrote on Friday.
Some quotes received
The cost of building truck haulage infrastructure at Huxley now sits with Magnum, but it has not reported the cost.
Its preferred site for rail at Colado actually boasts an overpass over the interstate highway – but road access there is currently a “high graded” dirt road.
Meanwhile, the company also continues discussions with port operators.
“Magnum is pursuing options that seek to bring [the project] online in the shortest and most economical way possible.”
MGU shares last traded at 2.4 cents.
