Fenix Resources to build new iron ore mine

Following a feasibility study confirming outstanding cashflow and financial returns, Fenix Resources (ASX: FEX) is set to build a new iron ore mine at the Beebyn-W11 deposit in WA.

The feasibility study revealed a high-grade, high-quality operation that provides strong returns over its seven year mine life with annual production of 1.5mdmt.

The Beebyn-W11 deposit has a maiden ore reserve of 10mt at an average grade of 62.2% iron and includes 8.3mt in proven and 1.7mt in probable ore reserves.

Based on forecast cash operating costs of $77.5wmt (US$50.4wmt), the mine will generate forecast annual earnings before interest, tax, depreciation and amortisation of $47.9m.

Fenix executive chairman John Welborn says the introduction of a new mine is an exciting time for the company.

“Beebyn-W11 will be Fenix’s third operational iron ore mine in WA’s Mid-West,” he said.

“The feasibility study demonstrates that Beebyn-W11 is an outstanding high-grade opportunity, which will generate strong financial returns in the forecast iron ore market.

“It’s an exciting time for Fenix with Iron Ridge continuing to perform strongly, the recommissioning of the Shine iron ore mine underway and Beebyn-W11 expected to commence production in early 2025.”

Fenix is now progressing with project execution work and approvals, anticipating all regulatory and environmental approvals to be received during 2024.

First production is expected in early 2025.