Latest assays reveal the presence of more high-grade direct shipping ore (DSO) outside the boundaries of the existing resource.
DSO is considered highly valuable in the iron ore industry because its high-grade means it can be taken straight to the port for export without processing, which can add further operational costs.
In CZR’s case, this economic advantage is further strengthened by the fact that the DSO runs from surface.
CZR said the latest results were consistent with its strategy to grow the inventory, mine life and forecast production rate at Robe Mesa from the currently planned 2 million tonnes a year to at least 3Mt a year.
The highest-grade intercepts were 11m at 57.3% iron from 34m; 12m at 57.2% iron from surface; and 11m at 57.1% iron from 33m.
CZR managing director Stefan Murphy said these results were “exceptional” and are the
highest-grades the company has intercepted so far at the project.
He noted the results were from surface and are outside of the resource that was reported in June this year.
“They will further strengthen our impending resource update, which will in turn drive our strategy to grow the mine life and production rate.”
The final assay results from the recent drilling program at Robe Mesa were approximately five weeks behind schedule.
The results come from 55 reverse circulation holes drilled at the northern extension of the deposit.
As a result, the updated mineral resource is now expected in mid-December 2022 and the revised ore reserve and mine plan are now scheduled for mid-to-late January 2023.
CZR recently raised $3.9 million through a rights issue at $0.012 a share.
The offer received strong support from shareholders, in particular the company’s largest shareholder Mark Creasy, who subscribed for approximately $2.1 million of new shares, maintaining his shareholding at 55.1%.
