Fe Limited fires first blast at JWD Project amid robust iron ore market

Fe Limited (ASX:FEL) has fired the first blast of ore and waste in the JWD Iron Ore Project pit as part of early development The blast, fired on June 12, contains high grade hematite that is outcropping at surface and will form part of early crusher feed for the plant. Drill and blast will continue along strike, building broken stocks ahead of the commencement of mining load and haul operations. “Strong market for JWD product” The 62% index price remains robust and the lump premium is at historic highs of US$0.70 per dry metric tonne unit – which would imply a current premium of around US$45 per tonne for the JWD product. FEL executive chairman Tony Sage said the company’s aim was to get the product to market as soon as possible to take advantage of the elevated iron ore price. He said: “It’s great to see the team achieve another milestone at JWD with the first blast occurring over the weekend. “The market for high grade lump material like that we will produce from JWD remains extremely strong so we are working hard to finalise the necessary logistics and offtake arrangements to get the product to market as soon as possible.” Shares have been as much as 9.2% higher intra-day to 6 cents. Mobilising crush and screen plant Earthworks for the crushing and screening plant are complete, including access roads that will allow for early ore supply from the pit to the run-of-mine ore stockpile (ROM). The company plans to mobilse the crushing and screening plant later this week in preparation for wet commissioning late this month. In addition, all of the mining fleet and ancillary equipment has been mobilised and contractor Big Yellow continues to ramp up its personnel on site.