Fe Limited appoints experienced iron ore executive to drive new projects into production

Proactive Investors Monday, 28 September 2020
Fe Limited (ASX:FEL) (FRA:B4T) has appointed an experienced iron ore executive as projects director to help drive the company’s two new iron ore asset acquisitions into production. Jeremy Sinclair, a mining engineer, has significant mining industry experience including developing and operating iron ore mines. He has 25 years’ experience across a variety of commodities, including more than 10 years at Atlas Iron and prior to that he held management roles in Rio Tinto’s Pilbara Operations. “Big step forward” FEL chairman Tony Sage said: “As I mentioned recently when we acquired our interest in the JWD deposit our key focus is to continue to build out an experienced management team to deliver on the potential of the assets we are assembling and the addition of Jeremy is a big step forward for us in that regard. “His experience in developing and operating numerous iron ore mines complements our existing commercial and geological skills and positions us well to advance our projects towards production.” Atlas experience While at Atlas Iron, Sinclair played a key role in the successful development and operation of five iron ore mines as general manager Pilbara Operations and then chief operating officer. Sinclair’s services are provided via ValMax, which also manages the Robe Mesa Pre-Feasibility Study for CZR Resources Ltd. Fe Limited has extended exposure to the strongly performing iron ore industry through acquiring a 51% interest in the Mining Rights Agreement for a production-ready WA project and also plans to acquire 50% of the advanced Yarram Iron Ore Project in the Northern Territory. Agreement for JWD deposit A binding JV agreement has been signed to acquire 51% from Gold Valley Iron Ore of the Mining Rights Agreement it holds over the Wiluna West JWD iron ore deposit, the underlying tenure for which is owned by GWR Group Ltd (ASX:GWR). This deposit has a JORC 2004 estimate of 10.7 million tonnes at 63.7% iron and low impurities using a 55% iron cut-off, with 60% classified as a measured resource. Significant development work has been completed, including resource optimisation, pit design and mine plan, with the majority of approvals in place including a Project Management Plan (PMP), which was approved in January 2020. The Mining Rights Agreement requires a minimum of 300,000 tonnes to be mined and trucked from the tenement within 21 months of the PMP approval date. “Positive outlook” At the time Sage said: “Together with the recent announcement of FEL’s purchase of the Yarram Iron Ore Project, this acquisition cements our view that shareholders will benefit greatly from exposure to the positive outlook and high prices of iron ore. “We believe both projects offer a real chance of early cashflows given the work that has already been completed." Yarram close to port In late August, FEL entered a binding conditional Heads of Agreement for the Yarram project, which is adjacent to existing underutilised mining infrastructure and just over 100 kilometres from Port of Darwin, Australia’s closest port to Asian markets. Yarram is partially located on an existing mining lease on freehold land and is adjacent to the Browns polymetallic project which is on care and maintenance. These features auger well for FEL’s plans to bring the project into early production supported by the potential to upgrade and enlarge existing resources.

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