The Iron Ridge Project is located approximately 600 km north-northeast of Perth and approximately 67 km northeast of the township of Cue in the Murchison region

Access to the mine is via the Great Northern Highway to Cue, along the sealed Beringarra-Cue Road to Glen Station, then along approximately 14 km of road from Glen Station to the Iron Ridge mine.

The Feasibility Study completed on the Project in November 2019 purposely used contract mining and trucking to minimise upfront capital requirements.

Infrastructure at Iron Ridge has been completed and mining has progressed and is ongoing. Since the first ore was produced in December 2020, over 1.3Mt of high-grade ore has been crushed and shipped.

Product is shipped through Geraldton, located approximately 490 km by road to the southwest, which has a dedicated iron ore bulk export ship loader that is utilised by Fenix Resources through Berth 5. In the first year of production 21 Panamax vessels have delivered high grade ore to customers throughout the Asian region.

Mining Plan

Following the finalisation of the Mineral Resource Estimate, the Company immediately started the process of conducting preliminary open pit plans and commenced a feasibility study. This work was conducted by Mining Plus Pty Ltd and internally managed.

Concurrently, the Company engaged Ecotec (WA) Pty Ltd to commence the process of preparing a Mining Proposal in accordance with the “DMIRS Guidelines for Mining Proposals in Western Australia, April 2016”.
Additionally, the Company conducted metallurgical testwork to determine lump to fines ratio, crushing indexes etc. These results were then used in the Feasibility Study.

Product offtake discussions were concluded in the December 2020 half-year and resulted in 50% of the product being subject to an offtake agreement with Sinosteel International Holding Co and the remaining 50% of the product being the subject to an exclusive marketing agreement with Atlas Iron Pty Ltd, a wholly owned subsidiary of Hancock Prospecting. Preparations for mining escalated quickly and the project was operational in December 2020.

The Fenix Resources Iron Ore product is high grade with low deleterious elements, and is therefore highly sought after by steel mills for environmental and blast furnace productivity reasons.

Logistics

In May 2019 Fenix formed a strategic alliance with trucking and logistics company, Newhaul Pty Ltd. This was a significant step towards the development of Fenix’s Iron Ridge Project located in the Mid-West region of Western Australia.

Fenix and Newhaul formed a new joint venture company which is known as Fenix Newhaul Pty Ltd (FNH). FNH provides all trucking services to the Project and has a brand-new fleet of Volvo and Mack prime movers and trailers purpose-built by Western Australian companies, Bruce Rock Engineering and Howard Porter.

In June 2022 Fenix announced that the Company signed definitive agreements with Newhaul Pty Ltd to acquire Newhaul’s 50% interest in Fenix-Newhaul Pty Ltd, resulting in the consolidation of 100% ownership of the haulage business into Fenix.

The key benefits to Fenix, include:

  • Highly profitable state-of-the-art fully integrated logistics business
  • Immediate reduction in C1 FOB cash costs by ~A$10 per tonne enabling Fenix to target total cash costs of ~A$70/wmt
  • Value accretive on an Earnings per Share Dividend per Share basis
  • Additional value expected from operational flexibility advantages
  • Is forecast to result in higher earnings for FEX and higher dividends for shareholders
  • Integrated model unlocks strategic expansion opportunities in Mid-West by combining mining expertise with logistics capabilities in haulage and port operations
  • Allows FEX to be substantially more resilient & robust to commodity price volatility
  • Transaction a key outcome from Board’s recent strategic review

Port Operations

Material Handling at the Port

Fenix has created opportunity for indigenous businesses throughout the mine and port operations, with the start-up of The Schwarze Brothers. The team of 4 brothers from the Wajarri Yamatji community provide material handling services at the port and utilise 3 Caterpillar 982 Next Gen loaders.

Resources

Fenix’s 100% owned Iron Ridge Project hosts a JORC-compliant total Mineral Resource of 10.5Mt at 64.2% Fe, 3.26% SiO2, 2.57% Al2O3 an 0.046% P. Of this resource, more than 95% is in the Indicated category.

Classification
Tonnes
Fe
Al2O3
LOI
P
SiO2
TiO2
 
Mt
%
%
%
%
%
%
Indicated
10.0
64.3
2.56
1.90
0.046
3.21
0.09
Inferred
0.5
63.2
2.80
3.13
0.046
4.41
0.12
Total
10.5
64.2
2.57
1.96
0.046
3.26
0.09