Fenix Resources restarts mining at Shine

Fenix Resources (ASX: FEX) has restarted mining at its Shine iron ore mine in WA.

The approval to proceed with the stage one mine plan at Shine follows a comprehensive review of all aspects of the mine, including the completion of an in-pit drilling program, product sampling, a tender process for mining and processing, and updated resource modelling.

Stage one is expected to produce iron ore at a grade of 60% iron with cash costs of $67.50/wmt.

Stage two and stage three mine plans will be assessed following further optimisation work with significant opportunity existing for Fenix to extend the mine life at Shine, subject to future approvals.

Production is expected to begin during the December quarter with haulage of 100kt per month.

Fenix executive chairman John Welborn commented on the restart of mining at Shine.

“The restart of mining operations at Shine is an obvious opportunity to expand Fenix’s production and leverage our excellent Mid-West mining and transport logistics capabilities,” he said.

“Shine will be our second wholly owned producing asset in the Mid-West and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows and profitability growth.

“Fenix is committed to unlocking value from the abundant valuable resources of the Mid-West and the obvious place to start is with the resources that we own and control.”

Operations were suspended at Shine in October 2021 in a bid to reduce spending and preserve the value of the site. This was credited to significant adverse movements in iron ore prices, shipping freight rates and product discounting.

Shine was then placed on care and maintenance pending an improvement in the iron ore market conditions.