Australian iron ore producer Territory Resources Limited has started the commissioning of its of its AU$4.3 million iron ore beneficiation plant at the Frances Creek mine in the Northern Territory.
Accordingly, about 800,000 mt of 51 percent iron scalp ore have been stockpiled near the new plant, which may be beneficiated to 60 percent iron and sold as fines.
The plant has a nominal feed rate of 130 mt/hour, with a designed 55 percent mass recovery. At steady-state operation, which is scheduled for February 2011, the plant will treat 80,000 mt of scalp feed to produce about 44,000 mt of high-grade fines ore every month.
"The commissioning of the beneficiation plant unlocked considerable value in the current environment of high iron ore prices," Territory Resources' managing director Andy Haslam said. He also noted that, while Frances Creek was recognised as a small, but high grade producer, the addition of the beneficiation plant opened up a raft of new blending opportunities for the project, while generating a new source of cash flow.
In September, Territory Resources extended the life-of-mine of the Frances Creek operation to 2013, following a boost in the ore reserves.The total indicated and inferred mineral resource increased to 10.06 million mt, grading at 58.1 percent iron, compared with the previously reported figure of 9.56 million mt, grading at 58 percent iron.