Tag Archives: Wiluna West

Fe Ltd and Big Yellow make plans to mine JWD iron ore project

Mineral project development, Mining services, Steel and iron ore, , , , , , , , , , , , , ,

Fe Limited says it has executed a letter of intent (LOI) with Big Yellow that could see the emerging company become the mining contractor for the JWD iron ore project in the Pilbara of Western Australia.

A full form contract is targeted to be completed within the next 30 days, subject to receipt of necessary environmental approvals and logistic contracts. This LOI, the company says, will enable Big Yellow to allocate the necessary mining fleet and people to the FEL project.

Big Yellow is a new contractor founded by mining executives Brad Gordon (former CEO of Acacia and Intrepid), David Edwards and Mitch Wallace (both ex MACA).

“FEL believes that Big Yellow’s combination of experienced personnel looking to replicate their past success in a new entity is a good fit with FEL’s own aspirations to do the same and looks forward to continuing to work together,” it said.

Following the LOI being executed by both parties, discussions have commenced on works that can be commenced in advance of final environmental approvals being received.

The approvals received to date allow certain clearing and preparatory works to occur at JWD, along with refurbishment of the existing office facilities on site. These early works will allow a faster ramp-up of operations once the remaining approvals and key contracts are secured, FEL claims.

FEL says it has revisited the JWD geological model and mine plan, with opportunities identified for a reduction in the strip ratio and an improved average iron ore head grade. If successfully implemented, this would have a positive impact on its margins through reduced mining costs and improved pricing as a result of higher-grade products than initially expected, it said.

FEL Executive Chairman, Tony Sage, said: “With mining at Wiluna close to commencing, we are pleased to have advised Big Yellow of our intention to appoint them as our mining contractor. We are well advanced with the final approvals and other key contracts and would anticipate being able to update shareholders on these shortly.”

In September, FEL acquired a 51% interest (including operatorship) in the Gold Valley Iron Ore Mining Rights Agreement over the Wiluna West JWD deposit. The JWD project is part of the wider Wiluna West project, owned by GWR Group. It came with a 10.7 Mt resource grading 63.7% Fe using a 55% Fe cutoff.

FEL classes the project as a low capex, direct shipping ore development, which will produce a high-grade (resource average circa-63.7% Fe), low impurity iron ore. A January 2021 presentation claimed the mining and transport of the first 300,000 t of iron ore is required by September under the iron rights agreement.

Dynamic Drill and Blast to deploy rigs at iron ore, gold mines in Western Australia

Explosives and blasting, Mine operation news, Mining consumables, Mining equipment, Mining services, Precious metals, Steel and iron ore, , , , , , , , , ,

Dynamic Drill and Blast Holdings says it has entered into a services contract with Pilbara Resources Group (PRG) and been selected as preferred supplier to Carey Mining, resulting in the delivery of work across two separate resource projects (gold and iron ore) in Western Australia.

The services contract with PRG relates to the provision of drilling and blasting services at GWR Group Ltd’s Wiluna West iron ore project, where PRG is also a contractor. It will see DDB provide services from November for Stage 1 of the C4 iron ore deposit, part of Wiluna West.

The C4 iron deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 mineral resource estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe indicated and 3.1 Mt at 58% Fe inferred. DDB’s contract relates to around 1 Mt of the 21.6 Mt resource, it said.

DDB has also been selected as preferred supplier by Carey for the provision of drilling services at the AngloGold Ashanti-owned Golden Delicious deposit, part of the Sunrise Dam operation.

It is estimated DDB will provide services from late December 2020 for a period of around 24 months, with DDB and the contractor working towards execution of the final form drilling contract.

The combined revenue from both services contracts once executed is estimated to be A$9-11 million ($6.6-8.1 million) and will be based on a fixed and variable pricing structure, DDB said. It will see the recently listed ASX company use up to four drill rigs, as well as around 20 personnel and ancillary equipment to deliver the required services.

As well as the new projects, DDB has deployed equipment and personnel to additional short-term projects, it said.

DDB Managing Director, Mark Davis, said: “We are pleased to be diversifying our client base, adding two longer-term production projects, including one in the precious metals sector. These contracts complement our current operations, which include long-term mining projects and specialised civil works, which will support the sustainable growth of the business.”