Venture Minerals Limited (ASX:VMS) has upgraded the iron ore resource to meet JORC guidelines at its Riley DSO project in northwest Tasmania.
The resource of 2 million tonnes at 57% iron now meets the relevant guidelines of the JORC Code 2012.
Ore reserves will also be upgraded to the JORC standard so that a decision to begin mining can be made at the earliest opportunity.
This work coincides with the release of tender documents in the next week to contractors for the mining, processing and haulage components of the Riley project.
Resultant prices will be used in updating of the Riley mining study.
“Significant steps” towards mining study completion
Venture managing director Andrew Radonjic said: “The resource upgrade and the imminent release of the tender documents for the three main contracts of the Riley Mine are significant steps towards completing the updated mining study.”
The company’s entitlement offer also closes this Friday, June 21, and following the completion Venture expects that it will apply to the ASX for attaching options to be listed.
Shareholders applying for new shares under the entitlement offer will receive one attaching option for every two new shares subscribed.
The project has reserves of 1.8 million tonnes at 57% iron with low impurities and is less than 2 kilometres from a sealed road which accesses existing rail and port facilities.
A binding term sheet has also been signed for Riley offtake with Prosperity Steel United Singapore Pte Ltd – one of the largest iron ore traders in the world.
Venture has had the Riley mine on care and maintenance since August 2014, shortly after it suspended operations.
The current iron ore price is now over 50% higher in AUD terms than upon the closing of Riley.
Since early last December, the 62% iron price has risen more than 60% in USD terms and with the recent events at Vales’ mines in Brazil, current price levels could be sustained for at least the near-term.
The company has already undertaken extensive pre-production works at the project to recommence operations, making the project a ‘quick to market’ opportunity.