Following drilling that extended the scale and grade of the direct shipping ore resource outside the previous envelope in the north, and added deeper but thicker channel iron deposit in the south, CZR has boosted Robe Mesa by 20% to 45 million tonnes grading 56% iron ore, with the calcined grade at 62.7%.

 

Around 80% of the resource (36Mt) is now classed as indicated, which the company said offered a chance to increase planned production rates and mine life as it completes its definitive feasibility study, not scheduled for next month.

 

The DSO DFS was anticipated this year, it is taking the extra time to maximise its planning based on the larger resource.

 

Maiden reserves are also being calculated.

 

CZR, which owns 85% of Robe Mesa, has grown tonnes around 83% over the past 12 months.

 

While many smaller iron ore producers have shut down over that period, managing director Stefan Murphy said Robe Mesa benefited from proximity to the long-lived Robe Valley operations.

 

CZR and Red Hill Iron are assessing sharing export options that could substantially cut development costs.

 

Murphy said the 3Mtpa DFS could start unlocking economies of scale, and building on 2020's 2Mtpa prefeasibility study that, based on a smaller resource base and a US$90/t iron ore price, expected to still generate around A$90 million in returns despite trucking the ore almost 430km by road to Port Hedland's Utah Point facility.

 

The PFS estimated cash costs of US$65/t, with the company now targeting sub-$55/t. 

 

Iron ore is trading at about $112/t.

 

CZR is also advancing its Croydon gold project, also in the Pilbara, along strike from De Grey Mining's 8.5 million ounce Hemi intrusion-related gold system. 

 

It already has targets from prior work, which will be complemented by new gravity surveys. 

 

Croydon has some 40km of strike of the Mallina Basin, about 70km south-east of Hemi, and has a similar geochemical signature.

 

Drilling is planned next quarter.

 

 

The company, where Creasy owns 55%, recently raised A$3.9 million at 1.2c, but had sought $8.4 million.

 

Creasy pumped in $2 million to maintain his stake. He also has a direct 15% stake in the Yarraloola project that contains Robe Mesa.

 

CZR subsequently consolidated its capital on a 17:1 basis.

 

Shares in CZR closed yesterday at 25.5c, capitalising it at $57 million.

 

On a post-consolidation basis, it has traded at 11.6-39.8c over the past year.