Magnum Mining & Exploration, an ASX-listed mining company, has announced that a technical refresh of its Buena Vista feasibility study has revealed the potential to increase its iron ore output from 450,000 tonnes per year (t/y) to 800,000 t/y. The study focused on fine-tuning the 2011 feasibility study and the recently announced scoping study for the Buena Vista iron project in Nevada.
The scoping study, which aimed at a production rate of two million tonnes per year, estimated that the project could produce around 1.6 million tonnes of concentrate annually over a 25-year mine life. The capital cost was estimated to be between $182 million and $378 million, with an operating cost ranging from $44/t to $90/t. The internal rate of return was projected to be between 26% and 54%, with a net present value ranging from $360 million to $745 million.
The technical refresh indicated that Buena Vista has the potential to deliver an iron ore product with an iron content of more than 68%, based on recent test work. The refreshed mine schedule supports a 25-year mine life, similar to that in the scoping study, with a constant grade feed to the beneficiation plant. The financial modeling for the project supports higher-grade ore extraction earlier in the mine life, allowing for the repayment of most of the capital investment before processing lower-grade resources.
Magnum Mining & Exploration is currently working on optimizing the mine schedule to align with the goal of achieving an 800,000 t/y concentrate production rate. This will involve accessing higher-grade ores earlier in the production process.
The increased output potential of the Buena Vista project is significant for Magnum Mining & Exploration. It not only allows for a higher annual production rate but also maximizes the quality of the iron ore product. This could lead to greater profitability and operational efficiency for the company.
The technical refresh of the Buena Vista feasibility study demonstrates Magnum Mining & Exploration’s commitment to continuously improving its mining operations. By fine-tuning the project and focusing on accessing higher-grade resources, the company aims to streamline production, reduce costs, and expedite the path to profitability.
Investors and stakeholders will be closely monitoring the progress of the Buena Vista project as Magnum Mining & Exploration moves forward with its plans to optimize the mine schedule and achieve the targeted concentrate production rate. With the potential for increased output and improved ore quality, the project could become a valuable asset for the company in the competitive iron ore market.
Overall, the updated feasibility study for Magnum Mining & Exploration’s Buena Vista project presents a promising outlook. The potential increase in output to 800,000 tonnes per year, along with the focus on high-grade resources, indicates a strategic approach to maximizing profitability and long-term success. As the company continues to optimize its operations, it is well-positioned to capitalize on the opportunities presented by the iron ore market.
