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Shree Minerals Ltd. (ASX:SHH) inching on the resumption of Nelson Bay River project

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Summary

  • NBR holds a JORC mineral resource of 11.3 million tonnes and includes the potential to extend the mineral resource over the interpreted 2.3 kilometres strike length.
  • The DSO mining operations started at NBR in 2013 but was put on care and maintenance due to lower iron ore prices.
  • Shree anticipates being in a position to formally decide on the resumption of mining operations at NBR project in 2021.

Gold and iron ore exploration and development company Shree Minerals Ltd. (ASX:SHH) continues to push forward on its journey to recommence the mining operations at the highly prospective Nelson Bay River project in North-West of Tasmania.

NBR in the neighbourhood of Established Mining Operations

The wholly owned iron ore project comprises the mining licence (3M/2011) in the neighbourhood of existing mining infrastructure, almost 100 kilometres from the port of Latta and 150 kilometres from the port of Burnie. The premium project is located in the established mining province hosting numerous established mining operations including Grange Resources’ Savage River iron ore and MMG’s Roseberry mine.

Must Read: SHH gears up for exploration at Turondale project in LFB

Shree Mineral pioneered the successful model to mine and ship direct shipping ore operations for iron ore in the entire Tasmania. The iron ore player conceptualised and commenced the direct shipping ore operations in November 2013 but was later put-on care and maintenance in June 2014 at the Nelson Bay River project. The mining operations were suspended due to a major crash in the iron ore prices, with only 25% of the excavation completed at the SDSO pit. The iron ore mining project employed over 50 personnel either directly or through its contractors.

The historical production from the historical mining program aggregated to 181 kilo tonnes of ores which were shipped off at average grades of 57.5% iron, 7.7% SiO2, 1.3% Al2O3, 0.04% S and 0.07% P. The historical customers' demand was recorded due to low impurities like phosphorus and alumina and positive metallurgy.

Important Read: Shree Minerals (ASX:SHH) submits DPEMP, a milestone towards NBR resumption

The Nelson Bay River project holds a JORC mineral resource of 11.3 million tonnes which includes magnetite resource of 7.8 million tonnes and 1.4 million tonnes of goethitic-hematite Resource. Further, Shree has identified the potential to extend further the mineral resource over the interpreted 2.3 kilometres strike length.

DPEMP draft submitted Final decision on the project likely in 2021

In late January, Shree updated that it had already submitted a draft DPEMP (“Development Proposal & Environment Management Plan”) to the Tasmanian EPA (Environmental Protection Agency) to recommence the DSO (Direct shipping ore) mining project at Nelson Bay River project. Shree Minerals has progressed on adopting the new framework and had already concluded the required technical studies for the draft DPEMP.

Further, the Tasmanian EPA will now assess the draft, and Shree hopes to be in a position to formally decide on the resumption of mining operations at the NBR project in 2021.

Read Here: Shree Minerals highlights growth potential across portfolio in December report

Shree traded at A$0.014 a share on 26 February 2021 with a market capitalisation of A$12.13 million.

*All financial information pertains to Australian Dollars unless stated otherwise.

 


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