Savage River

Mining

The mine comprises three principal open pits - North, Central and South Pits - Oriented north-south covering a 4km strike length and separated by unmined zones of thin or low grade material. An exploration lease is also held over Long Plains which is another occurrence of magnetite mineralization further south. Centre Pit is separated from North Pit by the Savage River which runs through a pillar area left to retain the river channel. The pits average 100-150m in depth - the proposed cut back and extensions will deepen them by up to a further 250m.

Mining activities in the open pit involve the use of conventional off - highway rear-dump trucks and hydraulic excavators, with drilling and blasting being used to prepare the ground ahead of mining. Grade control sampling is conducted on all blast holes within the orebody, as well as on selected holes around the periphery.

Processing

Processing facilities at Grange Resources' Savage River and Port Latta locations consist of the Primary Crusher, Concentrator, Slurry Pipeline and Pelletising Plant.

Primary Crusher:
Ore from the northern section of the mine is tipped into an Allis Chalmers 54/74 gyratory primary crusher, which is located near the rim of the pit. When the iron ore has been crushed to a maximum size of 200 millimetres, it is transported to the 100,000 tonne capacity crushed ore stockpile at the concentrator via a 1.3 kilometre overland conveyor. Ore from the southern section is crushed in an Allis Chalmers 54/62 gyratory crusher before conveyance to the crushed ores stockpile.

Concentrator:
Crushed ore from the stockpile is reclaimed via a tunnel system and fed into the concentrator. It is initially ground by two Hardinge 9.75 metre x 3.66 metre autogenous grinding mills, then by two Nordberg 8.84 metre x 3.96 metre ball mills. Magnetic separators then separate the magnetite from the gangue and the gangue is pumped to the tailings dam.

Slurry Pipeline:
The concentrate slurry from the concentrator is pumped 83km through a 229 millimetre internal diameter slurry pipeline to the pellet plant at Port Latta - transportation time is approximately 14 hours.

Pelletising Plant:
At Port Latta, filtered concentrate is formed into pellets (with bentonite as a binder) and fed to one of the five Midland-Ross vertical shaft pellet furnaces where they undergo approximately 4.5 hours of heat- induced processing. Finished pellets are screened to remove excess fine and coarse material then transferred by conveyor and a rail-mounted traveling/slewing stacker onto the finished product stockpile to cool and await shipment.