Based on an assessment of mining beneficiation and steel making costs by Exploration and Mining Consultants, the Koolanooka magnetite has probable reserves of 425 million tonnes averaging 33.2% iron, which after beneficiation results in a grade of 69% Fe.
Kingstream managing director Nick Zuks said the upgrade of the deposit to a reserve category further underpins long term iron ore supplies for the Midwest Iron & Steel Project.
“Together with our existing reserve of 161.5Mt at Tallering Peak and Weld Range, Kingstream has proven up adequate iron supply for a project life of more than 65 years,” he said.
The company has also recently completed a further drilling program at Tallering Peak, and initial resource calculations by EMC have indicated a substantial increase.
The Koolanooka resource was upgraded on the basis of a Whittle 4X optimisation study.
EMC said the Whittle Reserve represented an optimised estimate of the economic iron mineralisation within ore block models and the production of a series of contour pit shells with associated net present values.
