CuFe Ltd (ASX:CUF) released its Quarterly Activities Report for the period ending September 30, 2024, highlighting key operational and financial updates.
CuFe agreed to sell its JWD iron ore rights to Newcam Minerals Pty Ltd, with the transaction expected to complete in early November.
Meanwhile, the JWD project was placed in care and maintenance due to a significant decline in iron ore prices. The price drop, coupled with increased production costs from lower volumes, resulted in reduced revenue per tonne, with an average of A$152.25 compared to A$164.78 in the previous quarter.
Shipping costs rose to A$160.85 per tonne, leading to an operating loss of A$8.60 per wet metric tonne, a downturn from the A$13.52 profit per tonne in the prior quarter.
Operationally, CuFe completed the North Dam drilling program, and its Tennant Creek technical review indicated several promising targets for 2025 drilling.
Discussions on West Arunta’s access agreement were finalised post-quarter and an iron ore target for Robertson Range was identified following a site visit. CuFe also acquired the West Arunta tenure (E80/6052), positioning for potential resource development.
Cash available at the end of the September 2024 quarter was $2.33 million.
“The key event over the quarter has been the execution of a Sale and Purchase Agreement with Newcam for our JWD iron ore rights. This transaction is expected to complete in early November,” CuFe executive director Mark Hancock said.
“Operations at JWD were suspended during the period given the rapid fall in iron ore prices, causing an unwind in working capital due to the inability to draw against stock leading to a net cash outflow for the quarter, partially offset by the support provided by our hedge positions.
“On the exploration projects we have made good progress, with our first drilling campaign at North Dam, progress on heritage arrangements in the West Arunta, target definition at Tennant Creek and Iron Ore identified at Robertson Range. There will be plenty for the team to do in the coming months to progress activities in these areas.”
Project progress
Tennant Creek Copper Project (Northern Territory)
A technical review of Tennant Creek Exploration’s tenements (ASX release 22 July 2024) led to the preparation of key datasets, including an updated drill hole database to support re-modelling of the Orlando Global Resources. MEC Consulting is currently undertaking modelling of the global resource, which will include both open pit and underground scenarios. The resource update is slated for December 2024, with results informing ongoing studies and providing essential data for development options and valuation enhancements.
Yarram Iron Ore Mining Rights (Northern Territory)
No ground activities were conducted at the Yarram Iron Ore Project during the quarter. Environmental and heritage approval strategies remain under review.
North Dam Lithium Project (Western Australia)
An 18-hole reverse circulation (RC) drilling program, totaling 2,068 metres, was completed at North Dam, intersecting multiple pegmatites, some up to 85 metres thick. The drilling returned low-grade lithium concentrations of 0.15% lithium oxide (Li₂O) and rare earth elements of 853 parts per million (ppm) total rare earth oxides (TREO) (ASX release 30 October 2024). No niobium-bearing columbite or tantalite was intersected, which had previously been identified in surface rock chip samples. Further review of results is underway to assess the next steps.
West Arunta Niobium/Copper Project
CuFe engaged with the Parna Ngururrpa Native Title Group in Balgo in August and October to present exploration plans, leading to the successful execution of a Land Access Agreement with Parna Ngururrpa (Aboriginal Corporation), the Registered Native Title Body Corporate. This agreement, announced on 22 October 2024, facilitates CuFe’s application for ministerial consent to explore within the Aboriginal Reserve area.
Tambourah Lithium/Gold Project (Western Australia)
A technical review of the Tambourah Gold prospectivity identified historical RC drill intercepts along a prominent quartz reef system. High-grade surface gold rock chips from 2023 further underscore the tenement's gold potential, setting the stage for targeted exploration in upcoming work programs.
Bryah Basin Joint Venture Projects (CUF 20%)
Through Jackson Minerals Pty Limited, CuFe holds a 20% interest in Bryah Basin tenements E51/1033 and E52/1672, in joint ventures with Billabong Gold Pty Ltd, Alchemy Resources Ltd (ASX:ALY), and Auris Minerals Ltd (ASX:AUR). On 4 September 2024, Auris reported significant manganese intercepts, including 35 metres at 8.9% manganese (Mn) from 105 metres, with a 4-metre interval at 16.1% Mn.
Bryah Basin (E52/1613) - CUF 100%
CuFe reported high-grade iron ore rock chips from Bryah Basin (ASX release 17 July 2024), with further reconnaissance activities planned for the next quarter.