ASX-listed Pilbara iron ore explorer CZR Resources has boosted the mineral resource at its Robe Mesa project in the shadow of a prolific Rio Tinto mine precinct by 20 per cent to 45.2 million tonnes.
The increase came about from both the drilling of the project’s northern extension and a thick mineralisation hit in the south of the Robe Mesa deposit 120km south of Karratha.
In an environment favouring grades above 62 per cent, the northern extension’s higher grade iron ore has enabled the project’s average direct shipping iron ore grade to be nudged northwards.
Robe’s resource contains a 56 per cent grade, or 62.7 per cent once roasted.
The grade for Rio Tinto’s Pilbara blend, which accounts for about 70 per cent of its exports, comes in at about 62 per cent.
CZR Resources Managing Director Stefan Murphy said: “Extending the Mineral Resource to the north and maximising tonnes from the lower CID have been key objectives of the DFS to grow the mine life and production rates for Robe Mesa and these have now been achieved.”
“The Mineral Resource is now at a size where we can start unlocking savings through greater economies of scale.”
With the latest results in, CZR is hoping to increase the production rate – currently slated at 2mtpa – by one million tonnes per year and stretch out the mine life.
CZR has pencilled in March 2023 for release of its updated mine plan and is in the midst of building a definitive feasibility study.
The Mark Creasy-backed miner has long been subject to Rio Tinto takeover rumours given its proximity to the iron giant’s Yarraloola mine.
Front of mind is the notoriously volatile iron ore price, which has hovered between US$90 and $152 per tonne this year and appears to be closing 2022 out on a sideways trajectory.
A surging iron ore price which broke US$200t in 2021 led to several iron ore tiddlers spruiking projects around WA before economic uncertainty in China brought the chickens home to roost.
There is strong word out of China that tight COVID restrictions which have kept a lid on the nation’s economy since 2020 will be wound back, potentially restoking the Red Dragon’s fire.
China’s largest banks last month opened US$162bn in new credit to property developers to revive the property sector which has for more than one year been hampered by a liquidity crisis after Evergrande’s collapse.
Iron ore producers are optimistic this move will counteract global economic uncertainty to provide a timely boost to steel demand from hungry Chinese smelters.
CZR is one of the only small caps to keep its iron ore play in the headlines since the price mania of 2021.
Creasy and co will be keeping a close eye on iron ore demand to underscore the plucky explorer’s bid to break into the Pilbara’s domain of iron giants.
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