ASX-listed Fenix Resources is set to build a new mine in Western Australia’s Mid-West with the announcement that it is proceeding with the Beebyn-W11 project.

According to a new feasibility study, Beebyn-W11 will be a high-quality,1.5-million-tonne-a-year project that can start producing iron-ore in early 2025.

The maiden ore reserve estimate for Beebyn-W11 is ten-million tonnes at an average grade of 62.2% iron and includes 8.3-million tonnes in proven and 1.7-million tonnes in probable reserves.

The estimated initial preproduction capital investment is A$22.9-million, with the sealing of the road train haul road, costing about A$3-million, being deferred until after production starts, for a total capital expenditure of A$25.9-million.

Beebyn-W11, which is located 508 km from the Geraldton port and 20 km from Fenix’s existing Iron Ridge mine, is based on a direct shipping ore operation. Ore will be crushed and screened on site and separated into lump and fines product before being trucked to the Geraldton port.

Fenix is progressing with project execution work and approvals, anticipating all regulatory and environmental approvals to be received during calendar year 2024.

Fenix’s wholly owned logistics subsidiaries Newhaul Road Logistics and Newhaul Port Logistics will provide haulage logistics and port services, with material to be exported through the company’s existing infrastructure at the Geraldton port.

“It’s an exciting time for Fenix with Iron Ridge continuing to perform strongly, the recommissioning of the Shine iron-ore mine under way, and Beebyn-W11 expected to commence production in early 2025.

“Further opportunity exists to expand our operations and we continue to seek additional Fenix mining projects as well as investigate the potential to provide third-party logistics solutions to future project partners,” said executive chairperson John Welborn.

Sinosteel Midwest Corporation (SMC) is the registered holder of mining lease 51/869. In October 2023, Fenix signed a binding agreement with SMC securing the exclusive right to mine and export up to 10-million dry metric tonnes of iron-ore from the Beebyn-W11 deposit.