The Southdown Magnetite Project is an advanced project with over 1.2 billion tonnes of high quality mineral resources, including ore reserves of 388Mt.
The Southdown deposit is approximately 12 kilometres in length and covers an area of more than 1700 hectares. It is proposed to mine the deposit using proven open pit mining methods with the magnetite mineralisation then crushed, ground, screened and magnetically separated to produce a magnetite concentrate. The resulting magnetite concentrate will be pumped as slurry via a buried pipeline, 110 kilometres to the Port of Albany.
The Project has been designed to produce 10mtpa of high grade, quality magnetite concentrate at 69.5% iron. This is expected to command a premium price in the iron pellet feed market over a potential mine life of around 30 years.
A Definitive Feasibility Study (DFS) was completed by the project owners in 2012 for 10mtpa concentrate production with most of the regulatory and environmental approvals in place.
It is planned to be a pit to port operation involving:
- An open cut mine and concentrator.
- Transmission line for power supply.
- Desalination plant to supply water needs.
- Slurry and return water pipelines from/to the Port.
- Significant Albany Port expansions, as contemplated by the DFS.
Grange is currently seeking an equity partner for a strategic share in the Project. Existing tenure and approvals have been maintained.
Project security has been enhanced by continuing to build land tenure and access, and studies have been progressed relating to project engineering and further environmental permitting, including:
- Progression of the federal commonwealth environmental approval for mine, desalination and pipelines.
- Groundwater exploration which identified deep water-bearing palaeo channels with potential to contribute to construction water supply, with modelling underway to assess potential.
- Ongoing hydrogeological baseline studies.