Magnetite Mines Limited has signed an agreement with NextOre Pty Ltd for the supply of a mobile bulk ore sorting plant using a Magnetic Resonance (MR) sensor to trial the technology at its wholly-owned and operated Razorback High Grade Iron Ore Project.
Magnetite Mines said the agreement advances its exclusive partnership with NextOre and is an important step in their journey to unlocking the potential of their Razorback Project – located approximately 250 kilometres northeast of Adelaide. The MR technology has the potential to enhance processing by ‘pre-concentrating’ run of mine ore feed to increase plant head grade.
The NextOre agreement includes a non-refundable deposit of $100,000 and contemplates further, staged payments of $700,000.
The scope of the agreement covers supply of a full-scale mobile ore sorting plant to site at the Razorback Project for sorting magnetite ore using MR technology during the trial period for the purpose of mine feasibility analysis.
The agreement includes milestone dates, with the equipment despatch from the CSIRO Lucas Heights facility in 2021.
In October 2019, Magnetite Mines announced that it had entered into an Exclusivity Agreement with NextOre.
The agreement grants the company exclusive use of NextOre’s leading-edge MR ore sorting technology for any magnetite processing applications Australia-wide and all iron ore applications in the Braemar (including NSW) for a period of four years.
Magnetite Mines Chairman Peter Schubert said ore sorting technology, once demonstrated, has the potential to significantly enhance the competitiveness and value of the Razorback Project.
“We have been working with NextOre using advanced orebody modelling, giving us insight into the potential application of this technology,” he detailed.
“We are pleased to have exclusive access to this technology for application to magnetite in Australia. The bulk trial is the appropriate next step in a carefully planned and staged commercialisation pathway to build up our knowledge base and demonstrate its application at our Razorback High Grade Iron Ore Project.”
Mr Schubert noted that NextOre’s MR sorting technology, developed over many years in conjunction with the CSIRO, has a rapid response time allowing unprecedented selection accuracy and speed.
“The result is potential for a substantial increase in the head grade of plant feed, resulting in lower unit operating costs and a significant improvement in capital efficiency. This technology also offers potential environmental benefits, with enhanced water efficiency and reduced tailings volumes,” he said.
Chris Beal, CEO of NextOre said Magnetite Mines’ disciplined approach, which leverages emerging technologies with well-established mining methodologies, is a testament to the team’s knowledge and experience in the field.
“In our collaborative planning, the Magnetite Mines methodology of carefully integrating mine and mill activities speaks strongly to the ability to generate the maximum value from bulk ore sorting solution.”
“I am thrilled that NextOre can contribute to this transformative project and I look forward to jointly developing Australia’s reputation as a global leader in green resource extraction,” he added.