CuFe Ltd (ASX:CUF) continues the good work it is doing across its various projects. The company is focused on high-grade premium product iron ore projects with a near-term outlook and also offers exposure to key strategic metals, specifically copper and lithium.
The company has a diversified portfolio of interests in an array of projects and tenements, which are rich in copper, lithium, gold and iron ore, and are strategically situated within Australia's world-class mineral provinces.
The following is a breakdown of progress across several projects.
Lithium acquisition builds portfolio
CuFe completed the acquisition of E15/1495 on June 6, 2023, and the team has planned a field trip for next week.
The new tenement acquisition offers an opportunity to add lithium to CuFe’s future-facing critical mineral portfolio, while also leveraging its experience and contacts within the lithium space.
Read: CuFe adds lithium to mineral portfolio with strategic acquisition in WA’s emerging Southern Yilgarn Lithium Belt
The tenement is in the emerging Southern Yilgarn Lithium Belt, some 50 kilometres south-southeast of Coolgardie in the Goldfields region of Western Australia.
This tenement is within 20 kilometres of the Mt Marion Lithium Mine and within 10 kilometres of the Spargos Reward Gold Project and is considered prospective for lithium and gold.
The strategic acquisition sees CuFe exploring opportunities with several companies that are interested in participating in the exploration of the tenure.
CuFe executive director Mark Hancock said: “As usual the CuFe team is keeping busy and making good progress across our project suite. We are very pleased to complete the acquisition of our new tenement near the Mt Marion Lithium Mine and we already seeing interest from industry participants who see the potential there."
Further drilling planned at Yarram
Over at the Yarram Iron Ore Project, CuFe has conducted fieldwork on a flora survey, with data to be compiled and interpreted.
The data will complement the fauna studies that were completed earlier in 2023, with both forming key planks of the company’s environmental approvals submission.
“The recently completed flora survey is a key part of our environmental approval submissions and we would like to acknowledge the assistance from the Traditional Owners in assisting over the course of the survey,” Hancock said.
The company is also planning a new drilling campaign after the Northern Territory government recently approved an updated Mining Management Plan (MMP), for further drilling at Yarram.
CuFe is now looking for a local drilling contractor to complete drilling of the proposed diamond holes in July, which will provide geotechnical data to support pit designs and metallurgical data to assist in defining product characteristics such as lump to fines ratio and density.
Another drilling campaign later this year, will aim to grow the resource and mature its classification from inferred to indicated.
Ore mine production continues
Production continues at the JWD Iron Ore Mine with exports for May totalling 83,147wmt (comprising 71,367wmt of lump and 11,780wmt of fines), the largest monthly volume since the project commenced operations.
The quality of JWD lump is continuing to improve at depth, with recent shipments sold at a headline grade in excess of 63.5% Fe. This is leading to high demand from customers, with a May shipment completed to leading international steel mill Hyundai and a July shipment has been sold for delivery to a European mill at an attractive fixed price relative to index.
While falling index prices over April and May make the project’s economics more challenging, the impact of this has been partially offset by a significant fall in sea freight prices (down more than 50% from last year's highs), falling fuel prices benefitting road haulage costs and the weaker AUD.
CuFe continues to seek cost efficiencies to improve the viability of the JWD mine.
An Independent Expert’s report to accompany the Notice of Meeting to consider CuFe’s acquisition of the remaining 40% interest in JWD has been finalised and a draft Notice of Meeting for shareholders to consider the transaction has been submitted to ASX for review.
Hancock noted, “At JWD operations are back to full production following the weather disruptions experienced earlier in the quarter.
"We continue to focus on controlling the controllables there and await an improvement in sentiment in the Chinese steel sector to boost index prices. There have been some encouraging signs in that regard recently, with prices up by approximately US$7 so far over June, so we hope that trend continues.”