Fenix Resources Unveils Plans for New Iron Mine in Western Australia

Fenix Resources Limited has unveiled the findings of a comprehensive feasibility study for its Beebyn-W11 Project, a significant iron ore deposit situated in Western Australia's Mid-West region. The feasibility study confirms Beebyn-W11 as a high-grade, profitable iron ore project with production slated for early 2025, achieving an annual output of 1.5 million dry metric tonnes. The initial ore reserve estimate stands at 10 million tonnes (dry basis) with an impressive average iron grade of 62.2%, comprising 8.3 million tonnes in Proven and 1.7 million tonnes in Probable reserves, promising substantial returns throughout the mine's lifespan.

The Beebyn-W11 project, situated 508 km from Geraldton Port and 20 km from Fenix’s existing Iron Ridge Mine, operates as a Direct Shipping Ore (DSO) facility. The ore will be crushed, screened, and separated into lump and fines products on-site before being transported to Geraldton Port. Fenix’s logistics subsidiaries, Newhaul Road Logistics and Newhaul Port Logistics, will handle the transportation and port services, utilizing the company’s established infrastructure at Geraldton Port for material export.

Based on forecasted C1 cash operating costs of $77.5 per wet metric tonne (US$50.40/wmt) and an assumed 62% Fe index price of $153.85 per tonne (US$100/t with a foreign exchange rate of US$0.65 per A$), the Project is expected to generate an annual EBITDA of $47.9 million. The initial pre-production capital investment is estimated at $22.9 million, with an additional $3 million for sealing the road train haul road deferred until after production begins, resulting in a total capital investment of $25.9 million, which includes a contingency of $1.3 million.

Fenix is advancing with project execution and approval processes, expecting to secure all necessary regulatory and environmental approvals within the calendar year 2024. This timeline is aimed at facilitating the commencement of first production at Beebyn-W11 in early 2025.

Mr John Welborn, Executive Chairman of Fenix emphasized that Beebyn-W11 will be Fenix’s third operational iron ore mine in the Mid-West region of Western Australia. The Feasibility Study reveals that Beebyn-W11 represents a significant high-grade opportunity, poised to deliver strong financial returns based on forecasted iron ore market conditions. This positive economic outlook is bolstered by the project’s low initial capital expenditure and Fenix’s strategic infrastructure advantages.

He further highlighted Fenix's commitment to growth, aiming to enhance mine production and deliver substantial value to shareholders. Exciting developments include the strong performance of the Iron Ridge project, the ongoing recommissioning of the Shine Iron Ore Mine, and the anticipated start of production at Beebyn-W11 in early 2025. Fenix is also exploring opportunities for operational expansion and seeking additional mining projects, as well as investigating the potential to offer third-party logistics solutions to future project partners.