The shipment of 45,632 tonnes of iron ore with an average grade of 57.3% Fe left Burnie Port and the company expects to receive approximately A$5.1 million.
Venture Minerals Limited (ASX:VMS, OTC:VTMLF) has completed its first commercial shipment from Riley Iron Ore Mine in northwest Tasmania and will receive approximately A$5.1 million over the next two weeks.
This cargo of 45,632 tons of iron ore with an average grade of 57.3% Fe (iron) left the Port of Burnie and is bound for China.
The iron ore will be transported to an offloading port in China designated by Venture’s removal partner, Prosperity Steel United Singapore Pte Ltd, one of the world’s largest iron ore traders.
Venture Minerals Managing Director Andrew Radonjic said, “Our inaugural expedition marks a significant milestone for Venture Minerals and is the culmination of tremendous efforts by all stakeholders to successfully establish a resource base, obtain environmental and transportation approvals, construction of a processing plant, start of mining. and ore transport and now the first commercial shipment of iron ore.
“I would like to express my gratitude to the Federal, State of Tasmania and local governments for their continued support and recognition of the Riley Iron Ore project, as well as the flagship project of the Mount Lindsay Tin-Tungsten Company.”
Truck being loaded at the Burnie storage facility.
A drop in iron ore prices has seen the company temporarily suspend mining at Riley while it completes a comprehensive review of operations to identify profitability measures to offset some of the external market volatility escaping the control of society.
Recently, 62% Fe iron ore prices have fallen significantly from highs of over US$230 per tonne to the current price of US$106 per tonne.
This coincided with an increase in the discount rate for Riley’s 57% Fe ore, from a market rate of 10% used in the 2019 feasibility study, to the current market rate of 30%.
Venture, along with the broader market, also continues to experience a volatile shipping market, largely due to congestion at Chinese ports, as well as COVID-19 and political impacts.
This resulted in shipping rates tripling from $18 per ton since the feasibility study to approximately $54 per ton.
While the company believes that some of the external market pressures will likely only be temporary, it believes the best solution is to temporarily suspend mining operations to preserve the reserve base while it works through potential cost savings and assesses broader market volatility.
During this time, Venture will retain the Riley Mining team so that when market conditions improve, operations can resume immediately.
Truck alongside ship ready to unload Riley Iron Ore.
Focus on Mount Lindsay
On the other hand, at the nearby Mount Lindsay Tin-Tungsten project, higher tin prices and recognition of tin as a fundamental metal in the battery revolution have refocused Venture’s approach to developing Mount Lindsay.
Already one of the largest undeveloped tin-tungsten deposits in the world, Venture has commissioned an underground scoping study on Mount Lindsay that will build on previously completed feasibility work.
“We look forward to expanding our operations at Mount Lindsay with tin at record prices, so that we can continue to provide long-term employment in North West Tasmania; make significant contributions to Tasmania’s economy; and develop Mount Lindsay’s ESG-compliant EV Metal/Critical Minerals Tin-Tungsten mine,” Radonjic said.
“The mine will provide environmentally sustainable EV metals/critical minerals in a globally recognized Tier 1 ESG hub, which provides environmental outcomes superior to the vast majority of global tin sourced from high-risk ESG jurisdictions.”
Projects in Western Australia
In Western Australia, Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) recently committed to spend up to $3.7 million on Venture’s South West project, to advance previous exploration by Venture to test a nickel-copper-PGE target resembling Julimar.
At the company’s Golden Grove North project, he intersected up to 7% zinc, 1.3% copper and 2.1 g/t gold at Orcus and identified several solid EM conductors to test by drilling the along the 5 kilometer long VMS target area. , along the strike to the world-class Golden Grove zinc-copper-gold mine.
Venture recently doubled the nickel-copper-PGE landholding at Kulin by securing two highly prospective 20 kilometer long targets.