The company intends to quickly close the contract arrangements with its service providers
Australian iron ore company Fenix Resources has made a final investment decision (FID) for the Iron Ridge high-grade iron ore project located near Cue, in Western Australia.
The positive investment decision for the project follows the settlement of AUD10m ($7.2m) first tranche of the proposed AUD15m ($10.8m) capital raising, announced on 20 August 2020.
The company said that it has taken steps to secure camp buildings and important heavy vehicle equipment for the road transport function at the site, after making the FID on the project.
In addition, the company intends to quickly close the contract arrangements with its service providers including the mining, crushing and screening, road transport and port services contractors.
Under current expected timelines, Fenix is expected to begin the development activities at Iron Ridge project in October 2020, with plans to achieve first shipment in early 2021.
Feasibility study at Iron Ridge project was completed on the project in November 2019
The Iron Ridge project is located nearly 600km north-northeast of Perth and around 67km northeast of the township of Cue in the Murchison region in Western Australia.
A feasibility study at Iron Ridge project was completed, which used contract mining and trucking to reduce the upfront capital requirements.
According to the company, the project needs all the infrastructure, equipment, power, water, communications and other services to be established, as it is basically a greenfield development.
The Geraldton port, located around 350km to the southwest of the project, is the nearest port, and holds a dedicated iron ore bulk export shiploader, which is currently abandoned.