Fenix Resources is taking steps to recommence mining at the Shine iron ore mine in Western Australia.
The miner took the reins of Shine as part of its acquisition of Mount Gibson Iron’s Mid-West iron ore, port and rail assets last year.
The Fenix board announced today it has approved the restart and is aiming to commence site works in the current quarter with first iron ore production targeted for the end of the year.
Fenix executive chair John Welborn said Shine is an attractive ‘shovel ready’ growth project with similar mining scale and operational characteristics to the company’s nearby operations at Iron Ridge.
“The restart of mining operations at Shine is an obvious opportunity to expand Fenix’s production and leverage our excellent Mid-West mining and transport logistics capabilities,” Welborn said.
“Shine will be our second wholly owned producing asset in the Mid-West and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows, and profitability growth.
“Fenix is committed to unlocking value from the abundant valuable resources of the Mid-West and the obvious place to start is with the resources that we own and control.”
Fenix said approval to proceed with the Stage 1 mine plan for Shine follows a comprehensive review of all aspects of the project.
This included the completion of an in-pit drilling program, product sampling, a tender process for mining and processing operations, and updated resource modelling.
Pre-production capital expenditure is expected to be minimal given the availability of all required critical infrastructure and that all required approvals and permits are in place.
The approved capital expenditure budget for Stage 1 is $7.4 million and includes the upgrade of existing camp infrastructure, contractor mobilisation, and the upgrade of the Shine access road.
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