Fenix Resources Ltd (ASX:FEX) has resumed haulage of iron ore from its Iron Ridge Mine in Western Australia's Mid-West to its storage facility at the Geraldton Port.
This follows the resumption of power supplies in Geraldton in the wake of Cyclone Seroja, however, the Iron Ridge mine was not impacted by the severe weather event.
Shares have been almost 12.5% higher to 27 cents while the company's market cap is approximately $111.7 million.
Loading this weekend
Although mine operations were not impacted, road haulage to the company’s port storage facility in Geraldton was suspended on Sunday, April 11, 2021.
Fenix expects to start loading its next ship this weekend.
Iron Ridge operations
The 100%-owned, flagship Iron Ridge Iron Ore Project is a premium DSO deposit that hosts a JORC 2012-compliant resource around 490 kilometres by road from Geraldton port.
Production began on December 21, 2020, with the first shipment dispatched in February 2021.
High-grade iron ore attracts a premium price on the seaborne market as Chinese steelworks increasingly demand more pure inputs with lower emissions due to increasingly strict government regulations.
Only requiring crushing and screening, 1.25 million tonnes of ore per annum is scheduled to be trucked to the port by a JV company owned 50% by Fenix and 50% by Newhaul Pty Ltd.
Export capacity has been secured through binding agreements with Mid-West Ports Authority for the use of its Geraldton Port facilities.
Product sales are conducted 50% through an offtake arrangement with Sinosteel International Holding Company Limited and 50% through a marketing agreement with Atlas Iron Limited.