Fortescue Metals Group (ASX: FMG) has underwritten the development of the 60 million tonne annual mine plan with the 716 million tonne maiden Reserve for the Solomon Hub.
The Reserve was estimated from a Measured and Indicated Resource of 858 million tonnes, and a subsequent in-pit inventory of 795 million tonnes, which in turn converted at 90% to the estimate figure.
A big upside still remains for the estimate, with the calculation based on only 50% of the resource base.
The Reserve comprises Brockman fines of 314 million tonnes and CID fines of 402 million tonnes, with a very low average strip ratio of 1.5:1.
Fortescue said infill drilling at Solomon Hub is expected to result in additional total Resources along with upgrading of existing Inferred Resources to the higher confidence categories of Measured or Indicated.
The ores will be beneficiated through typical Pilbara processing techniques to upgrade the Reserve to a target product grade of 59% iron for the Brockman, and 57% iron for the CID ores, which is in the middle of typical Pilbara ores sold into the Asia markets.
An independent mine study identified cash cost (FOB per wet tonne) ranging between A$20 - $25 per tonne, which would put Solomon at the bottom end of the cost curve.
A major benefit of the Solomon Hub ore body is that mining can use conventional drill and blast methodology.