IMX Resources Sees Favourable Results with Mount Woods Project in South Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--IMX Resources Limited (ASX:IXR) recently announced that the scoping studies for the Mount Woods project are showing very favourable results for further development. IMX has been working with Engenium Pty Limited, a wholly owned subsidiary of Resource Development Group Limited (ASX:RDG), to deliver the projects' preliminary economic assessment.

Industrial Info has been tracking IMX Resources' Cairn Hill project, which is located 55 kilometres east of Coober Pedy in South Australia. The Cairn Hill project is capable of producing 1.7 million tonnes per annum (Mountpa) of high-quality direct shipping ore (DSO) magnetite.

The Cairn Hill project gives the company the relevant experience with DSO operations and can strengthen key results for the Mount Woods project, which is located approximately 12 kilometres from the Cairn Hill project. The company aims to maximize the use of the transport, mining and processing infrastructure already in situ; however, it is also exploring options that could make the projects more efficient.

Neal Meadows, the managing director of IMX, identified the unique nature of the Mount Woods project in regards to capital investment and the correlation to existing resources: "We believe the Mount Woods Project is a unique opportunity in the Australian magnetite industry, as the infrastructure required to develop the project is already in place and being used by IMX's Cairn Hill mine. As a consequence, unlike most pre-development and current Australian magnetite projects, Mount Woods does not require large-scale capital investment and is not reliant on third parties for new infrastructure, in order to develop a potentially economically viable project."

He also mentioned that the project would have a broader scope if it were to join with "a smaller-scale project to be cost-effective, while maintaining optionality for a large-scale development."

IMX Resources is proposing a production timeframe for the end of 2016, if not sooner. The project requires specific infrastructure to be built before full-scope efficiency can be reached.

Part of the project's initial plan is the power supply. The proposed power will be sourced via transmission line to the mine site, along with a slurry pipeline to transport ore that will run along the same corridor. The overall aim will be for the mined ore to be transported via rail system to the state capital of Adelaide, where it will be transported via ship.

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