The board of directors of Fenix Resources has given the green light to resume production at the Shine mine, located in Yalgoo, Australia. This step marks a significant advance for the mining company.
Fenix plans to commence work at the site within this quarter, with the objective of starting iron ore iron ore production in the last quarter of 2024. in the last quarter of 2024. This decision stems from a comprehensive review that included drilling, product sampling and updated resource modeling.
Process to restore production at Shine mine
The budget allocated for the first phase of this project is A$7.4 million (US$4.98 million). This initial phase includes improvements to the camp infrastructure, mobilization of infrastructure, mobilization of contractors, and optimization of access roads.
Acquired by Fenix in July 2023 from Mount Gibson Iron, the Shine open pit mine is located 295 km from Geraldton and 70 km southeast of Yalgoo. In addition to Shine, the acquisition included other iron ore assets in the Midwest in the Midwest region.
Mount Gibson acquired the mining rights to Shine from Gindalbie Metals in March 2014 and invested over A$25 million in its development, commencing production in March 2021. However, operations were suspended in October 2021 due to high transportation costs and declining iron ore prices.
Expansion and growth with the Shine mine
John Welborn, CEO of Fenix, said the resumption of operations at Shine represents a key opportunity to expand the company’s production and leverage its logistics and mining capabilities in the Midwest. According to Welborn, Shine will become Fenix’ s second wholly owned production asset in the region and will nearly double its annual production in the near term, increasing revenues, improving cash flow and driving profitability growth.
Fenix is determined to maximize the value of the Midwest’s abundant resources, starting with those it already owns and controls.
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Source and photo: mining-technology
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