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- Strike Resources (SRK) has provided updates regarding the Peruvian Government’s initiative to build a new railway
- The railway will be located between the west coast of Peru and the inland city of Andahuaylas where Strike’s Iron Ore Project is located
- The railway will deliver a large-scale, third-party funded transport solution directly to the doorstep of Strike’s iron ore resources and significantly reduce the capital costs associated
- If approved the US$10 million contract will aim to be completed by May 2020
- Strike has ended the day up 10.6 per cent with shares trading for 5.2 cents apiece
Strike Resources (SRK) has provided updates regarding the Peruvian Government’s initiative to build a new railway.
The railway will be located between the Port of San Juan de Marcona, the west coast of Peru, and the inland city of Andahuaylas where Strike’s Apurimac Iron Ore Project is located.
Recent Peruvian media reports indicate a gathering of momentum in relation to the railway with the Governor of the Apurimac Region recently meeting with the President of Peru, President Martín Vizcarra.
This meeting was to lobby the support of the Andahuaylas Railway and recent public statements made by the Minister of Transportation and Communications, Sr. Edmer Truillo, in relation to the advancement of the study that is currently underway.
Through the Ministry of Transportation and Communications, the Peruvian Government has commissioned a study into the economic, technical and social aspects of building the Andahuaylas Railway.
Considering Strike will be a major user of the proposed railway, it has been working with the Southern Railway Group to advance the study.
In a recent update meeting, in which Strike’s Managing Director attended, it was confirmed that the study, which is funded by the Peru Government for US$10 million, is on track for completion by May 2020.
The study has included an analysis of various railway route options with the preferred route now being confirmed as one that begins directly at the Andahuaylas Airport which is next to Strike’s Project.
Should the railway go ahead and be completed, it will deliver a large-scale, third-party funded transport solution directly to the doorstep of Strike’s iron ore resources at Apurimac.
This will dramatically reduce the capital costs for Strike of bringing the project into production as well as significantly improving the prospects for advancing the project.
A number of other large mining companies who hold projects in the vicinity of Strike’s Apurimac Project will also benefit from this railway.
The railway will also provide strong economic benefits to the Peruvian Government and economy.
Strike has ended the day up 10.6 per cent with shares trading for 5.2 cents apiece in a $8.691 million market cap.
