Mindoro Resources Ltd. today announced completion of a third shipment of high-iron/low nickel direct shipping ore from the Agata project, located in northern Mindanao, the Philippines.
The Agata project is held by Agata Mining Ventures Inc. ("AMVI"), a joint venture company owned 40% by Mindoro and 60% by the project operator, TVI Resource Development (Phils.), Inc. ("TVIRD"). Future DSO shipments will be reported on a monthly basis.
A total of 52,801 wet metric tonnes (wmt) of DSO containing 0.8% nickel and 48.6% iron left the port of Payong-Payong in Agusan del Norte, Mindanao, on November 28, 2014. AMVI expects to receive gross revenue of US$660,000 for the shipment, pending final assay and price adjustments.
AMVI commenced loading a fourth shipment of high-iron/low nickel DSO at the end of November, which is expected to be complete shortly, depending on weather conditions. Due to increased rainfall from November to March, AMVI expects shipments to take slightly longer to complete but is taking measures to improve operating efficiency in wet weather conditions.
As previously announced on November 26, 2014, AMVI also plans to mine the higher grade saprolite material containing greater than 1.5% nickel, found in the deeper part of the nickel laterite resource, and, subject to securing off-take agreements, make two 55,000 wmt shipments of the higher grade saprolite in the coming months. Following the shipment of the higher nickel grade saprolite, AMVI plans to mine and make separate shipments of both high and low grade saprolite and limonite in order to ensure that a blended higher selling price is obtained.
AMVI is currently planning to ramp up its nickel DSO operations from the previously stated goal of 2.5 million wet metric tonnes per year to 5 million wet metric tonnes by 2016 once it secures an amended and expanded Environmental Compliance Certificate and Declaration of Mining Project Feasibility with the Department of Environment and Natural Resources.
By doubling the initially planned production capacity, AMVI expects to achieve economies of scale that would significantly enhance operating margins. Once production has been fully ramped up, the resulting shipment schedule would be approximately one to three shipments of 55,000 wmt of DSO being dispatched every week.
Source: http://www.mindoro.com/