West Coast Project, Tasmania
The 100% owned Riley DSO Project is located 10km from the Mount Lindsay Tin-Tungsten Deposit and occurs as a hematite rich pisolitic and cemented laterite. The deposit is all at surface, located less than two kilometres from a sealed road that accesses existing rail and port facilities.
A maiden resource statement of 2mt @ 57% Fe was defined in 2012 under the JORC Code 2004, this was recently upgraded to meet the guidelines of the JORC Code 2012.
Following completion of the July 2012 resource, Venture engaged independent mining engineers, Rock Team, to complete mining studies on the deposit and produce a reserve statement. With all the hematite resources at Riley located at or near surface, the study delivered a 90% conversion rate of resource to reserve under the JORC Code 2004, this has now been upgraded to meet the guidelines of the JORC Code 2012. The upgraded reserve figure focused on the same areas as per the mine plan for when mining commenced in 2014, resulting in an 80% conversion rate of resource to reserve.
Venture continued with Stage One of the Wet Screening Plant construction at Riley with the ROM, concrete foundations, site works including the building of an all-weather haul road to the sealed Pieman Road now complete.
Recently the Company completed a $10 million placement to sophisticated, professional and institutional investors and issued 181,818,182 fully paid ordinary shares at $0.055, which now makes the Riley Mine fully funded to complete the wet screening plant and to deliver the first iron ore shipment in early 2021.
Riley DSO Project Tasmania
Riley DSO Project Tasmania
The Company has been focused on financing the construction and commissioning of the Wet Screening Plant through debt however, the opportunity had presented itself to raise equity given the recent strength in the Company’s share price partially due to the sustained increases in iron ore prices. Consequently, all long lead equipment items have now been sourced and are now in the process of being secured.
Venture believes the ability to raise equity significantly de-risks the project and the potential impact on the company as it transitions from an explorer to a producer.
Riley’s short mine life and quick time to production presents a unique opportunity to capitalise on the current historically high iron ore price and realise significant cash-flow for the Company in the near-term. Venture looks forward to the commencement of mining at Riley and becoming a producer.
Iron ore prices have been strong throughout 2020 and into 2021 with the outlook for the rest of the calendar year remaining positive due to continued demand generated by Chinese government infrastructure spending and ongoing supply concerns from Brazil.
The development of Riley is an important milestone in the Venture’s transition from explorer to producer. Taking us up to the present day, the iron ore price has provided an opportunity to recommence activity and the company is preparing for the first shipment.
The project will create over 100 jobs, injecting about $100m into the economy over the life of the mine, with many positive effects.
The outlook for the Iron Ore price remains positive. The Riley Mine is a small but significant project for the west coast of Tasmania.