Trucks loaded with iron ore headed to Port of Pisco in Peru. Source: Strike Resources
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strike Resources (SRK) is hauling iron ore from its Apurimac Project in Peru to the Port of Pisco
  • About 30,000 tonnes of iron ore product will be shipped from the port to China from next month
  • The haulage process marks a key milestone in the development of the Apurimac Project which has an annualised production rate of 250,000 tonnes per year
  • Given the strong demand for iron ore and China’s plan to secure long term sources of high-grade iron ore, Strike is in a strategic position to be a key supplier
  • Company shares are up 6.38 per cent and trading at 25 cents

Strike Resources (SRK) has commenced hauling iron ore from its Apurimac Project in Peru to the Port of Pisco.

About 30,000 tonnes of Strike’s premium lump direct shipping iron ore (DSO) will be shipped to Chinese customers from the Port of Pisco with an estimated free on-board cost of US$70 to $80 per tonne (A$92 to $105).

At this stage, the company is on track to export the first shipment of the targeted 65 per cent iron and low impurity product from next month.

The Apurimac product is expected to achieve a premium price compared to
the current benchmark price of around US$215 per tonne (A$284).

Managing Director, William Johnson, said the haulage process marks an important milestone for the project.

“The commencement of haulage of ore to a stockpile area near the Port of Pisco is
another key milestone in the development of the company’s 100 per cent-owned high-grade Apurimac Iron Ore Project. With first shipment targeted for July, Strike is now focused on building its local infrastructure in Peru to support an annualised production rate of 250,000 tonnes per year in the near term.”

About 50,000 tonnes of high-grade DSO has now been mined and is being crushed at two local crushing plants near the Apurimac Project and one new crushing plant that’s close to the Port of Pisco.

To support the annualised sales target of 250,000 tonnes, Strike continues to secure more crushing and transport capacity.

The Apurimac Iron Ore Project is considered one of the highest-grade, large-scale
magnetite projects in the world with the potential to support a significant iron ore operation.

Given the current strong demand for iron ore and China’s reported intent to secure long term sources of high-grade iron ore from countries outside of Australia and Brazil, Strike’s iron ore project has significant potential to be a reliable, long-term operation.

Company shares were up 6.38 per cent and trading at 25 cents at 12:21 pm AEST.

SRK by the numbers
More From The Market Herald
ABx (ASX:ABX) - Incoming CEO, Dr Mark Cooksey

" ABx (ASX:ABX) appoints Dr Mark Cooksey as CEO

Emerging hi-technology and explorer-developer ABx (ASX:ABX) has appointed Dr Mark Cooksey as CEO, effective February 1.

" Silver Lake Resources (ASX:SLR) wins bid for TSX-listed Harte Gold

Silver Lake Resources (ASX:SLR) has won its bid to acquire TSX-listed gold mining company Harte Gold.
Tesoro Resources (ASX:TSO) - Managing Director, Zeff Reeves

" Tesoro Resources (ASX:TSO) identifies new gold zone at El Zorro

Tesoro Resources (ASX:TSO) makes new gold discovery at its 85 per cent-owned El Zorro gold project…

" Group 6 Metals (ASX:G6M) shares drop on new CEO appointment

Group 6 Metals (ASX:G6M) appoints Keith McKnight as its new Chief Operation Officer.