IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) is investigating the potential to produce a direct sinter feed product for Asian steel makers from core samples taken from the Snaefell prospect, within its Mt Woods Magnetite Project in South Australia.
The company has begun the next phase of metallurgical testwork on the samples to produce a coarse high grade magnetite concentrate and determine its suitability as a direct sinter feed product, which could attract a premium price to traditional magnetite concentrates.
Previous testwork has indicated that the Snaefell magnetite concentrate has the potential to produce a premium quality concentrate suitable as an iron-making sinter plant feed.
At a coarse grind size of 180-200 microns, the Snaefell ore has the potential to produce a premium quality 66% iron concentrate.
The primary objective of the new round of testwork is confirmation that a Snaefell magnetite concentrate can be directly sintered thereby removing the costly requirement for pelletisation as a preliminary step in steel making.
Not only could this attract a premium price because of these cost savings, but it would also broaden the potential market for these concentrates to both South Korean and Japanese steel producers.
Testwork program steps
The testwork program involves production of a coarse magnetic concentrate in Perth, simulating the process flowsheet developed during the previous testwork.
This magnetic concentrate will then be tested for direct-sintering as part of various blends with traditional direct-sinter feed materials at the China Iron and Steel Research Institute in Beijing, China.
The results of this round of testwork are expected to advance the process of attracting a partner to develop the Mt Woods Magnetite Project.
Mt Woods resource upgrade
Snaefell currently has an Inferred resource of 569 million tonnes at 27.1% iron, using an 18% cut-off, and remains open at depth.
IMX has begun a 3,000 metre reverse circulation drilling program targeting coarse, high grade magnetite mineralisation to substantially increase this resource base.
Several particularly strong magnetic anomalies have been identified around 25 kilometres southeast of the company’s Cairn Hill magnetite-copper-gold mine and 30 kilometres east of the Snaefell prospect.
IMX has previously outlined an exploration target of 200 to 380 million tonnes at 25% to 35% iron outside of the current resource.
The drilling program is expected to be completed during November with the results available in the March quarter of 2013.
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