viewFe Limited

Fe Limited to receive iron ore royalty payment from new Deception mine

Mineral Resources brought the mine into full production in the March quarter and royalty payments to FEL are expected to increase.

Australian bank notes
The company will bank $211,729 from the early production royalty payment

Fe Limited (ASX:FEL) will receive a royalty payment of $211,729 from Mineral Resources Ltd (ASX:MIN) for mining of iron ore at Deception mine within the Koolyanobbing project in Western Australia.

FEL chairman Tony Sage said royalty payments from Deception were expected to increase with the mine coming into full production during the March quarter.

MIN has completed the facilities area with first ore hauled in late March to the Koolyanobbing run-of-mine.

1.5% royalty

FEL holds a 1.5% dry metric tonne, FOB royalty, the Evanston Iron Ore Royalty, in respect to the mining licence area that is approximately 20 kilometres north of MIN’s Windarling mine.

The Evanston Iron Ore Royalty area is in WA’s Southern Yilgarn Iron Province, about 400 kilometres northeast of Perth.

Sage said that the ongoing royalty payments would help secure FEL’s funding for all of its projects in the foreseeable future.

READ: Fe Limited’s partner identifies new copper mineralisation style in Bryah Basin

In its March quarterly report MIN said it was ramping up operations at Koolyanobbing.

During the quarter 1.303 million tonnes of iron ore were produced, up from 560,000 tonnes in the December 2018 quarter when production began.

There were 1.591 million tonnes mined in the quarter, up from 1.167 million in the previous quarter while there was 1.518 million tonnes shipped, up from 292,000 tonnes.

Plans to increase production

MIN said it had achieved its Koolyanobbing target annual run rate of 6 million tonnes of iron ore production and plans had been developed to increase production to 8 million tonnes by the first quarter of FY20.

Mine life is estimated at 5-6 years with potential to extend upon the completion of further drilling and exploratory programs on tenement holdings.

READ: Fe Limited secures option over large footprint in world-class Pilbara region, shares surge 50%

Earlier this week FEL entered an exclusive option agreement to acquire up to a 75% interest in 19 gold, copper and lithium tenements in WA’s Pilbara region.

The Macarthur tenement package provides FEL with access to highly prospective ground in a world-class lithium, gold and base metals province near to tier one infrastructure.

Quick facts: Fe Limited

Price: 0.029 AUD

Market: ASX
Market Cap: $14.7 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Fe Limited named herein, including the promotion by the Company of Fe Limited in any Content on the Site, the Company receives from said issuer...


Fe Limited undertakes capital raising to fund rapid exploration of new...

Fe Limited (ASX:FEL) chairman Tony Sage updates Proactive Investors on the company's recent lithium acquisitions in Western Australia, potentially giving FEL the biggest landholding of lithium tenements in the country.    Sage says an extensive mapping program focusing on...

on 28/5/19

2 min read