Mindax (ASX: MDX) has been granted a request by the ASX for an extension to the recent trading halt, with the company's status temporarily suspended, pending an iron resource update and capital raising details.
The iron ore resource update is highly anticipated by the market, as Mindax has a resource upgrade imminent at its one billion plus magnetite resource at Mt Forrest.
Mt Forrest is strategically located in the Yilgarn region of Western Australia, with a Scoping Study due out shortly.
Recent exploration identified that six of the eight magnetite targets drilled confirmed magnetite mineralisation intersections persist at depths greater than 250 metres below the surface.
This is a precursor to Mindax quantifying a strong business case within the Scoping Study for a 30 year mine life and likely advancing the project directly to a Prefeasibility Study such is the company's confidence in Mt Forrest.
The direct shipping ore component of the resource will be able to provide early cash flows.
Mindax is more advanced for infrastructure than most as it has leases for transport corridors to the Menzies railhead in place and negotiations with rail, port and other infrastructure partners are also well advanced.
With $5 million in cash, Mindax is well placed to move ahead in the short term.