Lodestone strings in the Muster Dam resource

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Muster Dam is now reported to have an inferred 2012 JORC resource of 1.55 Bt grading 18.7% iron and 15.2% mass recovery, following upgrade work from the original 2004 JORC resource prepared by Minotaur Exploration .

The company previously had total resources of $4.19 billion for its flagship Razorback development and describes Muster Dam as a “natural expansion option”.

The two deposits in the province of Braemar, in southern Australia, have comparable physical and chemical characteristics, although they are 110 km apart because they are hosted in the same geological unit.

Magnetite said the new resource only covers Muster Dam, but there is a lot of prospectivity around it in the Peaked Hill, Duffields and Surrender Dam prospects.

Muster Dam is 90 km south of Broken Hill and only 40 km from rail and road infrastructure.

The area was primarily explored for Broken Hill style base metal deposits until the potential of the Braemar iron formation was recognized ten years ago.

Magnetite was awarded an exploration license on Muster Dam in May, after winning a tender process led by the South Australian government. He paid nothing for the land.

The Minotaur abandoned the land in 2021.

In September, Magnetite refocused its focus on a larger scale 5-7 Mtpy Razorback development based on accelerating market demand for premium iron ore products to reduce carbon emissions.

He thinks Razorback can deliver a 67.5% concentrate.

Magnetite raised A$15.8m at 2.5c via a rights issue earlier this year to fund its work and has around $13m in the bank.

Shares of Magnetite, which have traded at 1.5c and 4.6c over the past year, were flat at 1.6c today, valuing the company at $61m.

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