CZR Resources Ltd (ASX: CZR) has taken a major step towards development of its Robe Mesa iron ore project by securing Mining Licences for its key deposits in Western Australia.
The Robe Mesa deposit sits immediately north of Rio Tinto’s Mesa F project while the P529 deposit is immediately south of Mesa F.
The WA Department of Mines, Industry Regulation and Safety granted Mining Licences M08/533 (Robe Mesa Deposit) and M08/519 (P529 Deposit) for a period of 21 years.
This follows the signing of the Mining Agreement with the Robe River Kuruma Aboriginal Corporation that provides economic and social benefits to the traditional owners and consent for mining to be undertaken at the Robe Mesa iron ore project,
Managing Director Stefan Murphy said granting of the Mining Licences further adds to CZR’s Definitive Feasibility Study (DFS) for Robe Mesa. This is in addition to CZR’s recently announced consortium agreement with Strike Resources and CSL Australia to develop a joint export facility from the existing Port of Ashburton.
The company has also made significant advancements in its strategy to grow mine life and production rates at Robe Mesa, with the recent Mineral Resource increased to 45.2Mt and acquisition of the FMG tenement, expanding CZR’s P529 deposit, located only five km from Robe Mesa.
Mr Murphy said the granting of the Mining Licences for Robe Mesa is a watershed moment for CZR and the outcome of several years of diligent, hard work by the company and its key stakeholders.
“CZR has a clear strategic goal to grow the size and forecast production rate from the Robe Mesa iron ore project, to make it resilient throughout the economic cycles and a more valuable asset for CZR and its shareholders,” Mr Murphy said.
“The granting of Mining Licences covering the Robe Mesa deposit, following a collaborative agreement with the Robe River Kuruma Traditional Owners, has been a goal of CZR for many years and further de-risks our project, adding value to the Robe Mesa asset.
“Iron ore is largely driven by logistics and marketing, and CZR has shown over the past month that much of the hard work behind the scenes is beginning to pay off, with the pit-to-port value chain taking shape and bolt- on acquisitions secured to further enhance our project scale.”
Mining Licences M08/533 and M08/519 are held by CZR Resources through its wholly owned subsidiary, Zanthus Resources Pty Ltd (85% interest in Robe Mesa) and its joint venture partner Zanf Pty Ltd (15% interest in Robe Mesa and a wholly owned subsidiary of Creasy Group). The Mining Licences have been granted for a term of 21 years.
CZR is now updating its mine plan and production schedule for Robe Mesa, targeting 3.5Mtpa to align with its proposed export capacity through the Port of Ashburton.
Haul road and port engineering studies are also well advanced, which will be critical inputs to the DFS.
CZR will commence field activities next week, with Resource definition drilling on the P529 deposit and E08/2137 (acquired from FMG) and water bore drilling, including test pumping to confirm adequate water supplies for mining operations at Robe Mesa.
Project Background
CZR’s 85%-owned Robe Mesa deposit sits within the Robe Valley Channel Iron Deposits (Robe Valley CID). The Robe River JV (Rio Tinto 53%, Mitsui 33%, Nippon Steel 14%) has mined the Robe Valley CID since the 1970s and has current mining operations at Mesa A, Warramboo and Mesa J, with rail linking to export facilities at Cape Lambert.
The Robe River JV recently invested A$1.7B in the Robe Valley JV to replace production from existing mines at Mesa A, Warramboo and Mesa J. Production commenced at Mesa B, C and H in August 2021 and there is extensive drilling underway at Mesa F, effectively surrounding CZR’s Robe Mesa deposit.
The Robe Mesa iron ore deposit currently has a JORC compliant Mineral Resource base of 45.2Mt at 56% Fe (62.7% Fe calcined) at a 55% Fe cut-off grade. Updated open pit mine designs, production schedule and JORC Ore Reserves are currently being prepared and is scheduled to be reported during the March Quarter 2023.
CZR has announced the formation of a consortium agreement with Strike Resources and CSL Australia to develop a joint export facility from the existing Port of Ashburton. Should approvals be granted, the parties will then enter into an agreement to construct the Port of Ashburton Facility to provide a ~5 Mtpa capacity low-cost, environmentally sustainable iron ore and bulk material export solution from the existing Port of Ashburton.
CZR is focused on increasing the production profile and mine life above the levels reported in the PFS. The DFS mine plan will target a production rate of +3Mtpa of DSO fines of similar specification to Rio Tinto’s Robe Valley fines, produced at the adjoining Mesa A and Warramboo mines.
For further information please visit: https://www.czrresources.com/
