Australian explorer Fenix Resources’ board of directors has approved the development of its Iron Ridge DSO iron ore project in Western Australia, the company said in a statement.
According to a 2019 feasibility study, the project would produce around 1.25mn mt of ore annually over six-and-a-half-year mine life.
The company is expecting to begin developmental activities in October 2020, with the first shipments targeted for early 2021.
After the settlement of the first tranche of the proposed capital raising, which consists of AUD10mn ($7.29mn), the company moved in with full swing to secure camp buildings and key heavy vehicle equipment for road transport function.
In August, it had announced an AUD15mn ($10.93mn) capital raise to fund the construction of the project. It had also partnered with Atlas Iron to sell 50pc of its iron ore.
The company is now working speedily to conclude contract arrangements with key service providers and port services contractors.
($1 = AUD1.37110)