Australian iron ore producer, Mount Gibson Iron, is set to restart operations at the Koolan Island hematite deposit, which is located in the Buccaneer Archipelago off the northern Kimberley coast of Western Australia.
A recent announcement by the company shared that a Seawall seepage barrier was completed in July 2018, with the company now progressing to its dewatering activities. It has also just been announced that the project’s Main Pit Ore Reserves have upgraded to 21.0Mt at 65.5 per cent iron since April 2018, which extends the mine’s life to roughly 2023.
“The High-Grade Koolan Island Restart Project represents a compelling investment that capitalises on the structural shift in favour of high-grade ores,” Mount Gibson said.
The Koolan Island Mine is expected to become Australia’s highest-grade direct shipping ore (DSO) hematite producer at an Ore Reserve Grade of 65 per cent, with very low contaminants. Hematite is the mineral form of iron oxide and is the oldest known iron oxide mineral that has ever formed on earth and is usually found in rocks and soils.
Mining is targeted to commence in the December 2018 quarter, with first ore sales set for the March 2019 quarter. The estimated payback period of Koolan Island Mine Restart is predicted to be around 36 months from the commencement of sales.
The company acquired the Koolan Island Mine through a successful takeover of Aztec Resources in early 2007.
More information on this project can be found here.