Weaker iron ore prices and delays in project approvals were the main reasons for the suspension of Venture Minerals’ Riley iron ore project in September.
“After receiving full approvals for the project in 2013 and having secured financing, including an iron ore hedge facility at a time of higher iron ore prices, Venture was well placed to fully underwrite the life of the project,” Venture managing director Hamish Halliday said in the ASX announcement.
Now the company says it is ready to recommence production as soon as prices improve and hopes to develop a major tin-tungsten project at Mount Lindsay, near Tullah.
“This work affords Venture the opportunity to commence production on relatively short notice and take advantage of any future appreciation in the iron ore price.”
“The new prospects, located only 2km south west of the Mt Lindsay Deposit (Figure 1), are defined by electromagnetic (EM) anomalies extending over a combined strike length of 4.5km (Figure 2). In addition, the targets are adjacent to the interpreted northern extension of the Federal-Bassett Fault, which is the dominant structure for tin mineralization at the world class Renison Tin Mine (production since 1968 of 231Kt of recovered tin) located only 15km to the south of Mt Lindsay,” it says in the ASX announcement.