RE: Update progress11 Apr 2021 12:34
The project has well-planned near, mid and long-term opportunities. Phase 1 is the near-term opportunity provided by the pending acquisition of an existing 7.5MW smelter, where a deal has been agreed. To start the mine and buy the smelter will require R300 million (£15 million). Ironveld’s resource in the Bushveld in Phase 1 mining at 40,000tpa would take 25 years to mine 1Mt of the 56Mt, leaving 98% of the resource intact. Its crying out for a far larger project that could really begin to make the most of this cracking potential and that’s where Phase 2 and Phase 3 come in.
There is a clear opportunity for even earlier cash flow at this project, even though acquiring the Middelburg smelter is still the prime strategy. Magnetite ore could be simply dug up, crushed and without any further processing be used in dense media separation (DMS) for coal washing. Such a move could generate some handy cash flow