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CZR gets drilling as DFS looms for Pilbara iron ore project

CZR Resources has moved swiftly to kick off drilling in order to establish a definitive feasibility study for its Robe Mesa iron ore project in WA’s Pilbara region after receiving heritage approval last month.

The company is targeting the northern extension of Rio Tinto’s neighbouring Mesa F deposit as it aims to grow its iron ore inventory and increase production rate up to three million tonnes per annum from 2mtpa outlined in CZR’s pre-feasibility study.

CZR says it will also conduct infill drilling in a bid to upgrade its inferred resource to indicated to further define its ore reserve.

The recently established heritage clearance allows the company to drill a previously unexplored area outside and immediately along strike to the north of Robe Mesa’s current 37.5 million-tonne mineral resource.

For the past two months, the company has been working to complete environmental baseline studies covering the mine area, ancillary infrastructure and potential haul routes.

The studies form part of its environmental reporting requirements and submissions to government regulators to allow mining at the site.

CZR has also completed metallurgical drilling this week to finalise process plant design and prepare customer samples.

Its diamond core samples are being prepared for transport to Perth for metallurgical test work.

With both RC and diamond drilling underway at the same time, and with clear heritage and environmental parameters to work within, we can now develop our larger mine plan with more certainty.

The Robe Mesa project is a joint venture, with CZR holding 85 per cent and 15 per cent held independently by private company ZanF.

The deposit forms part of CZR’s Yarraloola iron ore project, 120km south-west of Karratha.

The Robe Mesa deposit is within the prolific Robe Valley, that also hosts the Robe River joint venture between Rio Tinto, Mitsui and Nippon Steel that has been mining the channel iron deposits since the 1970s.

Last month CZR increased the deposit’s mineral resource by more than 50 per cent whilst maintaining an iron ore grade of 56 per cent.

The updated resource rose from 24.7Mt to 37.5Mt and reflects the strong assay results reported in March that revealed extensive direct-shipping iron ore outside the prefeasibility study.

Whilst unseasonal heavy rain dampened drilling progress at Robe Mesa throughout May and June, CZR Resources has been a hive of activity in recent weeks and results from its latest drill campaign will give a greater understanding of the site’s potential.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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