Tag Archives: Venture Minerals

Venture Minerals takes the dry screening route at Riley iron ore project

Venture Minerals Ltd has decided to start operations at the Riley iron ore project, in Tasmania, Australia, using dry screening as a way of realising early cash flow.

The company’s Board of Directors has delivered a positive final investment decision (FID) for the mine prompting preparations for mining and dry screening operations to commence immediately, the company said. This could see mining occur in the next week.

“The dry screening operations of the Riley mine is part of the ramp-up phase of the project with the full production rate to occur upon successful commissioning of the wet processing plant (which is subject to financing),” Venture Minerals said.

It is another key milestone on the company’s push towards its first shipment of Riley ore.

The company recently signed a Port Access Agreement with TasPorts and signed the Road Access Agreement with Hydro Tasmania, securing the pathway for Riley output from mine gate to shipping.

The Riley mining team has commenced preparations for low cost mining and dry screening activities given the zero strip ratio (iron ore at surface) characteristics of the Riley DSO deposit, it said. “The contracting of a dry screening plant for processing the top layer of the Riley deposit affords the company the opportunity to accelerate production and capture the current iron ore prices before the wet screening plant has been built and commissioned, and also reduce the capital cost requirements,” it added.

Venture is now finalising discussions on financing options including a debt facility to fund capital to complete construction of the wet screening plant at Riley. It is also focused on concluding the road haulage tender process as well as achieving more efficient ore handling logistics, including finalising negotiations on gaining access to other on-wharf storage.

The current Riley mine economics are well above the August 2019 feasibility numbers, which were based on a $90/t 62% Fe price, according to Venture. This is due primarily to higher iron ore prices (>$120/t 62% Fe price) and lower fuel prices, and further supported by a strong iron ore market outlook, it said.

At the $90/tonne 62% Fe price, the August 2019 feasibility study returned a post-tax cash surplus of A$31 million ($22 million) over the two-year production life of the mine.

Shaw Contracting returns to Riley iron ore project

Venture Minerals’ plan to restart mining at the Riley iron ore project in Tasmania, Australia, is accelerating with the announcement that the ASX-listed company has awarded Shaw Contracting the preferred tenderer status for mining and processing works at the operation.

One of Tasmania’s most experienced civil and mining contractors, Shaw previously worked with Venture when it commenced mining the Riley iron ore deposit, in 2014. The company also carried out several major overburden and mining contracts for Savage River Mines (pictured) and Bluestone Mine in Tasmania.

The Riley project is on a granted mining lease, where reserves of 1.8 Mt at 57% Fe with low impurities have been outlined. Venture says around 90% of the equipment previously purchased for mining the orebody is still on hand and there is potential for producing a direct shipping ore product. The deposit is also all at surface, Venture says, and is less than 2 km from a sealed road that accesses existing rail and port facilities.

Venture has had the former operating mine on care and maintenance since August 2014 shortly after it suspended operations.

The company says it continues to work on updating the previous feasibility study at Riley so a decision to recommence mining can be made at the earliest opportunity. Following a favourable study outcome, its goal is to commence iron ore production in the December quarter of this year.

On the contract award to Shaw, Venture said: “In the awarding of preferred tenderer status to Shaw, Venture did receive strong interest from other service providers in relation to the mining and processing tender packages sought by the company. Venture is now well progressed in the process of collating this and other necessary information to form a robust view of potential project economics as it finalises the Decision to Mine study.”

The company has already undertaken extensive pre-production works at the Riley project to recommence operations, making the project a ‘quick to market’ opportunity for the company, it said.

Venture’s Managing Director, Andrew Radonjic, said: “Venture is glad to welcome back the experience and knowledge of Shaw Contracting to the Riley iron ore project. The advantages of getting Shaw to pick up from where they left off will be a huge advantage to the recommencement timeline of the mine.”