Savage River back on track
GRANGE Resources has returned to full production rates at the Savage River magnetite iron ore project for the remainder of 2019.
The miner said it had established access to the main ore zone from the west wall of North Pit and had commenced mining high grade ore.
Pellet production is expected to be about 1.2mt for H2 and 2.1mt for the full year. Forecast sales are expected to be about 1.3mt for H2 and 2.2mt for the full year.
The exploration decline is progressing to plan and is on schedule to be completed by the end of 2019, while the third stockpile is being excavated and a two-stage ventilation fan has been installed for the extent of the decline.
Diamond drilling has begun with the first hole completed for an advance of 650m, the first of two to provide decline development information.
Grange is also considering sub-level caving methods at Savage River, which will be reviewed as part of its underground pre-feasibility progress study, expected to conclude in the first quarter of 2020.
Grange chief executive M. Honglin Zhao said the team would continue to focus on sustained delivery of high-grade ore to support full production rates for the balance of 2019.
“Progress on the feasibility study for potential underground mining continues to plan and will inform our life of mine planning,” he said.
The development is a turnaround for the Tasmanian-based producer, which experienced low production and product sales in the March quarter, a period in which the company focussed on minimising the overall impact to achieve full-year production.
The Savage River mine has a projected life beyond 2030.
Grange produces a high-quality iron ore pellet with low levels of impurities that support reduced environmental impacts for end users.
Grange is also a majority joint venture partner in a major magnetite development project at Southdown, near Albany in WA.