Magnetite Mines Ltd [ASX:MGT] is an iron ore producer who is advancing their Razorback High Grade Iron Ore concentrate project in Braemar, South Australia.
The MGT share price is up 21.74% today at time of writing, after announcing the South Australian Department of Energy and Mines has granted them 100% interest in the Muster Dam tenement package. The tenement includes iron ore prospects Muster Dam, Surrender Dam, Duffields, and Peaked Hill.
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A 1.5 billion tonne inferred resource
Muster Dam is about 110 km from the company’s own iron ore project, Razorback, and is about 40 km southeast of the city of Olary, close to rail and roads as you can see in the map below.
Source: Magnetite Mines
Muster Dam has an inferred mineral resource estimate of 1.5 billion tonnes of iron ore at JORC Code 2004. Magnetite Mines is touting Muster Dam has ‘a range of potential synergies’ with Razorback, with both projects on the same Braemar iron ore formation.
The project has been subject to quite a bit of exploration by the previous owner, Minotaur Exploration Ltd [ASX:MER]. It’s been explored for iron ore, but also for uranium and cobalt as well.
Magnetite Mines Chairman Peter Schubert said:
‘We believe market conditions are ideal to advance high grade iron ore projects in regions endowed with extensive infrastructure such as the Braemar Iron Formation. Magnetite Mines has assembled an extremely talented team of experts to deliver the Razorback Pre-Feasibility Study, and there are many overlapping synergies that can be immediately and advantageously applied to the Muster Dam Iron Project.’
What’s next for the MGT Share Price?
Indeed, it’s been a great year for iron ore producers with iron ore prices going higher on the back of surging demand from China and iron ore producer Vale running into production problems.
In the near future, the company is looking to move ahead with developing Razorback while at the same time evaluating the Muster Dam project.
At time of writing Magnetite Mines share price are trading at 2.8 cents, up from yesterday’s close at 2.3 cents.
Higher iron ore prices have also helped push the Aussie dollar higher.
How will the Aussie dollar move next?
Check out our latest report ‘Will the Aussie Dollar Rise or Fall in 2021?’, where The Rum Rebellion editor Greg Canavan explores this question in depth.
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For The Rum Rebellion