Fenix Resources Limited (ASX: FEX) (Fenix or the Company) is pleased to announce the approval from the Board to resume mining operations at its wholly owned Shine Iron Ore Mine (Shine). The Company plans to initiate site preparations within the current quarter, with the first iron ore production scheduled for the fourth quarter of 2024.

The decision to proceed with the Stage 1 mine plan for Shine follows a thorough project review, encompassing an in-depth in-pit drilling campaign, product sampling, a competitive tender process for mining and processing operations, and updated resource modeling. With all necessary critical infrastructure readily available, pre-production capital expenditure is minimal. Additionally, Fenix has secured all required approvals and permits.

The Stage 1 capital budget is set at $7.4 million, encompassing enhancements to current camp facilities, mobilization of contractors, and improvements to the Shine access road. The Pre-production capital expenditure is limited due to the presence of essential infrastructure being readily accessible.

Fenix Resources Limited (ASX: FEX) will leverage its wholly owned Newhaul logistics and port services to achieve substantial cost efficiencies. Shine boasts a logistical advantage with a haul distance to Geraldton of under 300 kilometers, considerably shorter than the roughly 500 kilometers from Geraldton to Iron Ridge. Initial haulage operations are projected to average 100,000 tonnes per month from the start of production throughout the current and upcoming financial years (FY25 and FY26).

Anticipated total C1 cash costs of approximately $67.50 per wet metric tonne (wmt) delivered to Geraldton (FOB). This translates to a highly attractive US$45.50/wmt. figures are expected to generate robust cash flows and robust operating margins for Fenix.

The Company is moving forward with the Stage 1 mine plan for Shine, involving an estimated capital outlay of $7.4 million. Production is slated to commence in the December 2024 quarter, with a monthly haulage target of 100,000 tonnes from the outset throughout the current financial year (FY25) and expected to continue at a similar rate into the forthcoming financial year (FY26).

Shine boasts a JORC compliant Mineral Resource Estimate of 15.1 million tonnes, averaging 58% Fe. Stage 1 operations aim to produce iron ore at a higher grade of 60% Fe, achieving competitive C1 cash costs of $67.50 per wet metric tonne (US$45.50/wmt). Fenix's efficient transport logistics and port infrastructure promise a favorable economic forecast for Shine, requiring minimal initial capital expenditure due to fully established critical site infrastructure and regulatory approvals. Future plans for Stage 2 and Stage 3 will be evaluated following further optimization efforts, offering significant potential for Fenix to extend Shine's mine life, contingent upon forthcoming approvals.

Mr. John Welborn, Executive Chairman of Fenix, emphasized the strategic importance of restarting mining operations at Shine as a significant opportunity for the company. He highlighted Fenix's robust mining and transport logistics capabilities in the Mid-West region, which they aim to leverage for expanding production. Welborn emphasized the acquisition of Shine, solidifying Fenix's position in the Midwest with a second wholly owned producing asset. This strategic move is projected to nearly double Fenix's annual production capacity in the near future. This expansion is anticipated to drive increased revenues, stronger cash flows, and accelerated profitability growth for Fenix. He reiterated Fenix's commitment to unlocking value from the abundant resources in the Mid-West, starting with their owned and controlled assets to maximize returns and operational efficiency.