AI assistant
STRIKE RESOURCES LIMITED Capital/Financing Update 2022
65855_rns_2022-08-29_70aa3dff-10a5-4523-9be9-925b6d3ebc76.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
Tuesday, 30 August 2022 ASX Code: SRK
MARKET ANNOUNCEMENT
First Export Shipment of Paulsens East Lump Iron Ore and Future Operations
Strike Resources Limited (ASX:SRK) (Strike) is pleased to confirm that MV Cepheus Ocean sailed out of the Utah Point Multi-User Bulk Handling Facility (Utah Point) at Port Hedland on 29 August 2022, carrying 66,618 tonnes of lump direct shipping iron ore (DSO) sourced from Strike's Paulsens East Iron Ore Mine (Paulsens East) in the Pilbara region of Western Australia, bound for a steel mill customer in China.
Figure 1: MV Cepheus Ocean preparing to dock at Utah Point
William Johnson, Managing Director:
The successful dispatch of the maiden shipment of iron ore from Paulsens East is a significant milestone for the Company. I would like to take this opportunity to thank our dedicated staff, contractors and partners who have who have contributed to this exciting achievement. I would also like to acknowledge the Puutu Kunti Kurrama and Pinikura People (PKKP) as the traditional owners of the land upon which the Paulsens East Iron Ore Mine is situated.
STRIKE RESOURCES LIMITED A.B.N. 94 088 488 724
Level 1, Suite 1, 680 Murray Street, West Perth, Western Australia 6005 T | +61 8 9214 9700 F | +61 8 9214 9701 E | [email protected]
Figure 2: MV Cepheus Ocean docked at Utah Point, ready for loading
Figure 3: Paulsens East Lump DSO being loaded into MV Cepheus Ocean
This maiden shipment has been sold to a Hong Kong based buyer, with the terms of the sale agreement including market reflective pricing referenced to a benchmark base price and lump premium, with market-typical impurity penalties and a freight differential adjustment, on a Cost and Freight (CFR) basis for delivery into China.1
The specifications for Paulsens East Lump DSO are as follows:
| Fe | SiO2 | Al2O3 | P | S | TiO2 | LOI |
|---|---|---|---|---|---|---|
| 62% | 7.0% | 3.0% | 0.105% | 0.015% | 0.20% | 2.5% |
1 Refer Strike's ASX Announcement dated 1 August 2022: Maiden 68,000 Tonne Shipment of Paulsens East Lump Iron Ore
Further Shipments
The Company has structured its Paulsens mining operations in such a manner that further shipments can be made on relatively short notice.
Strike continues to review market conditions and in particular the forward benchmark pricing for iron ore and will make further shipments to Utah Point if iron ore pricing and market conditions meet the Company's internal thresholds.
About Paulsens East Iron Ore Mine
Paulsens East is located ~235km by road east of Onslow (and Port of Ashburton) and ~650km by road south of Port Hedland in the Pilbara, Western Australia (refer Figure 4).
Paulsens East Stage 1 Production involves the mining of surface detrital material and crushing, screening and Ore Sorter processing to produce Paulsens East Lump DSO (grading 62% Fe), with road train haulage to the Utah Point Multi-User Bulk Handling Facility at Port Hedland for export, where Strike has secured from the Pilbara Ports Authority an export allocation of 200,000 tonnes per financial year.
Stage 2 Development will involve the conventional open pit mining of the Paulsens East hematite ridge, ramping up to an annualised production rate of up to ~1.8 Mtpa, with road train haulage to and export (via transhipment operations) through the Port of Ashburton near Onslow, where the Department of Water and Environmental Regulation (DWER) has granted a Works Approval under the Environmental Protection Act 1986 for the export of up to 1.8 Mtpa of iron ore.
Figure 4: Paulsens East Iron Ore Mine Location – Haulage Routes to Port Hedland and Port of Ashburton
AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:
William Johnson T | (08) 9214 9700
Managing Director E | [email protected]
ABOUT STRIKE RESOURCES LIMITED (ASX:SRK)
Strike Resources Limited (ASX:SRK) is an ASX listed resource company which is developing the Paulsens East Iron Ore Mine in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has exported "Apurimac Premium Lump" DSO product of ~65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was spun-out of Strike under a $9m IPO in May 2021. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.