CZR Resources secures land at both ends of Rio Tinto’s iron ore project
With the acquisition of E08/2137, CZR now owns the full 1.1km of higher-grade iron ore strike to build on its existing Robe Mesa resource of 45.2Mt at 56% iron (62.7% calcined iron).
Emerging iron ore producer CZR Resources (ASX: CZR) has scooped up highly strategic land holding immediately north and south of one of Rio Tinto’s (ASX: RIO) prized Pilbara deposits.
Under a deal announced today, CZR will acquire from Fortescue Metals Group (ASX: FMG) a key tenement which covers the southern flank of Rio Tinto’s Mesa F deposit. This tenement is also contiguous with CZR’s P529 deposit.
The upshot of this is that CZR will hold all the land across the southern end of Rio’s Mesa F deposit.
Along the northern border of the Rio deposit sits CZR’s Robe Mesa deposit where the resource was recently upgraded to 45.2Mt at 56% iron (62.7% calcined iron).
P529 deposit
The P529 mineral resource contains a further 4.2Mt at 53% iron and a higher-grade zone of the P529 deposit extends into the FMG tenement to be acquired by CZR.
The deal means CZR will emerge with substantial land holdings on the northern and southern ends of Rio’s project, which also has the Rio train line in its backyard.
CZR managing director Stefan Murphy said consolidating the Robe South tenements provided CZR with a potential second source of iron ore for its Robe Mesa project.
“This acquisition is consistent with CZR’s strategy of growing mine life and production rates for the broader Robe Mesa project,” Mr Murphy explained.
“Rio Tinto is also very active at its Mesa F deposit, with drill rigs operating right up to our border and we know that their deposit extends directly into our ground.”
Gaining ground
CZR’s successful consolidation of the tenements surrounding Rio Tinto comes hot on the heels of it signing a binding memorandum of understanding with Western Australian iron ore producer Strike Resources (ASX: SRK) and transhipment specialist CSL Australia Pty Ltd (CSL) with the aim of building an iron ore export facility, based at the existing Port of Ashburton in WA’s West Pilbara region.
The consortium will aim to secure approvals for the construction of a bulk loading facility for the export of iron ore from the Port of Ashburton, in what will be the only multi-user facility available in the West Pilbara region.
The consortium will also undertake preliminary designs for the port, including road train unloading, storage shed, transhipment vessel (TSV) loader and ancillary fixed and mobile infrastructure.