WA mining company Ascot Resources new iron ore mine

WA mining company gets approval for 84 million tonne mine development

Ascot Resources Wonmunna iron ore mine

84.3 million tonnes of iron ore mining development earmarked in the iron ore rich region of Western Australia.

Despite tough trading conditions, a fall in the price of iron ore that has squeezed the smaller iron ore miners out of the market, Ascot Resources announced it has secured WA government approval to develop its Wonmunna iron ore project.

It’s thought the Wonmunna mine could yield about five million tonnes of iron ore a year.

Situated close to Rio Tinto’s West Angelas mine and close to the Great Northern Highway, the proposed mine is about 80 kilometres northwest of Newman. There are three mining leases and an exploration licence forming the agreement from the Western Australian Department of Mines and Petroleum (DMP); and of course there are various conditions that must be met including stringent environmental management plans.

In October last year, Ascot Resources secured a Native Vegetation Clearing Permit, which allowed them to commence topsoil and overburden removal once the development finance is secured.

“iron ore transported by road to Port Hedland”

Owing to the mine’s close proximity to the Great Northern Highway, the iron ore concentrate will be transported by road to the busy iron ore ship loading terminals of Port Hedland.

“mining lease covers 230km2”

The Ore Reserve is estimated to be some 84.3 million tonnes at a 50% Fe (iron) cut-off grade. This was discovered by an extensive drill program of more than 1,200 holes over a distance of 56 kilometres. The total mining lease covers 230km2.

The mine, once in production phase will produce about three million tonnes a year, after which expectations are to reach full production capacity by the second year of operation.

One of the biggest challenges for WA mining companies is securing a buyer for the iron ore. As we all know, the iron ore market is not exactly yielding high prices, so the company faces an uphill battle to not only secure finance, but to find customers who are willing to pay the right price. Remaining profitable is the nighest concern for mining executives and with shareholders breathing down their necks, the race is on to develop the sales channel.

Ascot keen to get runs on the board as soon as possible

Keen to develop the mine, Ascot is looking to advance the Wonmunna development to get some runs on the board as soon as possible.

Ascot Resources is also active in Colombia where it holds a 90% JV interest in the Titiribi Coal project.

Further reading for job seekers

It’s not enough these days to wait for jobs to be advertised. Real job seekers, people who are looking for a career in the industry, have to be proactive. This means, when you read articles like the Ascot Resources Wonmunna iron ore project, it should spark further interest in discovering more about the company.

Iron ore mining jobs in Western Australia are becoming more and more competitive as the mining industry scales back. However, that’s not to say there aren’t opportunities to get into mining. Much of the iron ore projects are traditionally drill and blast, although there are a large amount of strip mining techniques.

Important information about Ascot Resources (Perth WA)

  • www.ascotresources.com.au – find out more information about the company
  • Ascot are an Australian Stock Exchange listed company. ASCOT RESOURCES LIMITED (AZQ) www.asx.com.au
  • Read Ascot’s Dec 2014 financial report
  • The Wonmunna project could run for 7 years
  • The total Wonmunna mining lease covers around 230 square kilometres
  • Ascot was sitting on cash reserves of $7.6 million in Sept 2014
  • Current market valuation of $18.4 million
  • Ascot are JV partners in the Colombian Titribi Coal Project with some 8MT of resource
  • Address: 512 Hay Street,  SUBIACO WA 6008

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