Studies advanced strongly for a new multi-billion dollar iron ore project in the Pilbara region of Western Australia, including an assessment on whether lower grade zones could be added to the potential mining inventory.
The annual report of Flinders Mines Ltd (ASX: FMS) detailed the progress being made on the Pilbara Iron Ore Project (PIOP), 70 kilometres from the major iron ore mining town of Tom Price.
Last year, after a tough takeover battle, control of the company moved to TIO (NZ) Ltd, a company controlled by the Todd family in Wellington, now ranked as New Zealand’s third richest family.
Following that control change the company’s head office moved from Adelaide to West Perth, still considered to be Australia’s mining hub.
Chairman Neil Warburton said processing test work during the year on PIOP’s detrital resource material showed that while most goals were achieved there were areas for future work highlighted.
This takes in logistic solutions for transportation and shipping and a quest to identify new high-grade ore zones.
After the end of the financial year the company had a capital raising that brought in $A8.275 M before costs and $A5 M of this was used to repay an unsecured loan from PIO Mines, a subsidiary of TIO (NZ).
Flinders also holds the Canegrass prospect in Western Australia where copper, cobalt and platinum group metals have been outlined, though a study showed in the copper zones that cobalt and platinum metal mineralisation may be “negligible.”