Name of the Project
Paulsens East iron-ore project.

Location
The project is located in the Pilbara, Western Australia.

Project Owner/s
Strike Resources.

Project Description
A revised scoping study using the Utah Point multiuser bulk handling facility at Port Hedland as a shipping port has confirmed excellent project economics for the Paulsens East iron-ore project, with significant advantages, including existing infrastructure that can be rapidly used to bring the project into production.

The project comprises a 3-km-long outcropping high-grade hematite iron-ore ridge, located about 140 km west of Tom Price, containing a Joint Ore Reserves Committee-compliant indicated mineral resource of 9.6-million tonnes at 61.1% iron, 6% silicon dioxide, 3.6% aluminium oxide and 0.08% phosphorus.

The resource is amenable to openpit mining, using drill-and-blast, excavator and truck operations.

The revised scoping study envisages a 1.5-million-tonne-a-year production schedule of direct shipping ore (DSO) over a minimum four-year mine life.

Ore will be crushed and screened to produce DSO lump and fines products, with an estimated average product grade of 61% iron over the life-of-mine.

The crushing and screening plant will comprise jaw and cone crushers, double-deck vibratory screens, connecting conveyors and a telescopic stacking conveyor to convey the products to truck-loading stockpiles.

The ore will be trucked from the mine to Utah Point.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The revised scoping study forecasts a pretax net present value (NPV) of between A$68-million to A$195-million, with the base case NPV estimated at A$123-million.

The internal rate of return (IRR) is estimated at between 341% and 813%, with the base case IRR estimated at 551%c

Payback is estimated at three months in the base case.

Capital Expenditure
Estimated preproduction capital costs are estimated at $8.2-million, including a contingency of $1.4-million.

Planned Start/End Date
Strike is targeting a development timetable for production to start in the fourth quarter of 2020; how­ever, this may be significantly impacted on by market conditions, including current issues per­taining to the Covid-19.

Latest Developments
The project has additional upside potential, with opportunities identified to increase the production rate, extend the mine life, improve iron grades and further reduce costs – all of which will be examined as part of further studies.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Strike Resources, tel +61 8 9214 9700 or email info@strikeresources.com.au.