Overview
Stage | Permitting |
Mine Type | Open Pit |
Commodities |
|
Mining Method |
|
Mine Life | 28 years (as of Jan 1, 2022) |
A Definitive Feasibility Study completed in 2012 (DFS 2012, see ASX announcement May 2012) defined a project to produce 10 million tonnes per annum (mtpa) of high-grade magnetite concentrate at 69.5% iron, over a potential mine life of 14 years.
PFS 2022, completed in February 2022, has identified a reduced capital development option.
Grange Resources continue to investigate alternate development models which may see the Southdown Project move into a Definitive Feasibility Study. |
Source:
p. 3
The Southdown Joint Venture (SDJV) is a joint venture between Grange Resources Limited (70%) and SRT Australia Pty Ltd (SRTA) (30%).
Contractors
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Summary:
The Project is located ~90km northeast of Albany in the southwest corner of Western Australia. The Southdown deposit extends approximately 12km in length, under Mining Lease and Retention Licence covering an area of more than 120 square kilometres on largely freehold farming property.
The Southdown deposit occupies the core of a gently east plunging, overturned tight isoclinal syncline with a steeply south dipping axial surface. The deposit is offset by moderately northeast dipping dextral reverse faults and subsidiary steeply south-east dipping sinistral faults. Currently the resource extends for 11 kilometres of the 12 kilometre strike length of the deposit, with variable depths ranging from a surface outcrop in the west, to 480 metres below surface in the east.
Summary:
Mining will be undertaken by conventional bulk mining methods utilising drill and blast, hydraulic face shovels and dump trucks coupled to a run of mine (ROM) stockpile. Ore will be trucked directly from the blasted faces to either direct tip into the primary crusher or onto the ROM stockpile, as proposed within DFS 2012, but with a reduced mining rate to satisfy a nominal concentrate production rate of 5mtpa.
The final proposed pit is six kilometres long, one kilometre wide and about 370 metres deep.
The reserve within mine lease M70/1309 has the capacity to provide a nominal 5mtpa of concentrate for up to 28 years of mine life. This study uses contractor mining.
Source:
Flow Sheet:
Summary:

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Projected Production:
Commodity | Units | Avg. Annual |
Iron (magnetite)
|
kt
| 5,000 |
All production numbers are expressed as concentrate.
Operational Metrics:
Metrics | |
Annual mining rate
| ......  |
* According to 2022 study.
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Reserves at December 31, 2020:
Measure of recoverable magnetite Mineral Resources are reported above a cut-off of 10% DTR.
Category | Tonnage | Commodity | Grade |
Proven
|
384.6 Mt
|
DTR
|
35.6 %
|
Probable
|
3.1 Mt
|
DTR
|
41.7 %
|
Proven & Probable
|
387.7 Mt
|
DTR
|
35.6 %
|
Measured
|
423 Mt
|
DTR
|
37.8 %
|
Indicated
|
86.8 Mt
|
DTR
|
38.7 %
|
Inferred
|
747.1 Mt
|
DTR
|
30.9 %
|
Total Resource
|
1,257 Mt
|
DTR
|
33.7 %
|
Commodity Production Costs:
| Commodity | Average |
All-in sustaining costs (AISC)
|
Iron (magnetite)
|
......
|
C1 cash costs
|
Iron (magnetite)
|
......
|
Assumed price
|
Iron (magnetite)
|
......
|
* According to 2022 study / presentation.
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2022 Study Costs and Valuation Metrics :
Metrics | Units | LOM Total |
Sustaining CapEx
|
$M AUD
|
......
|
Total CapEx
|
$M AUD
|
......
|
After-tax Cash Flow (LOM)
|
$M AUD
|
......
|
After-tax NPV @ 10%
|
$M AUD
|
......
|
After-tax IRR, %
|
|
......
|
After-tax payback period, years
|
|
......
|
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Source:
Corporate Filings & Presentations:
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