How Magnetite Mines Boosted Razorback Resource to 3.8 Billion Tonnes with New Cut-Off

Resource Update and Strategic Alignment

Magnetite Mines Limited (ASX – MGT) has announced a significant update to the Mineral Resource Estimate (MRE) for its flagship Razorback Iron Ore Project in South Australia. The company has lowered the cut-off grade used in the resource calculation from 11% to 8% estimated Davis Tube Recovery (eDTR), bringing the Mineral Resource Estimate into alignment with the Ore Reserve cut-off grade. This adjustment has resulted in a substantial increase in the reported tonnage, with the Razorback Mineral Resource now estimated at approximately 3.8 billion tonnes, up from 3.2 billion tonnes previously.

The global Mineral Resource, which includes the Razorback, Ironback Hills, and Muster Dam projects, has also grown to around 6.6 billion tonnes. Despite this increase in resource size, the Probable Ore Reserve remains unchanged at approximately 2.0 billion tonnes following a review by AMC Consultants, underscoring the robustness of the project's economic foundation.

Technical and Economic Considerations

The revision to an 8% eDTR cut-off grade reflects updated economic and market assumptions, including iron ore price forecasts and cost inputs, as detailed in the company's 2022 Pre-Feasibility Study. This lower threshold allows for the inclusion of additional mineralisation that was previously excluded, enhancing the project's scale without compromising concentrate quality or economic viability.

Magnetite Mines' Managing Director, Tim Dobson, highlighted the strategic importance of this update, emphasizing the project's first-mover advantage within the Braemar iron province. He noted the superior metallurgical performance of the Iron Peak deposit, which continues to stand out due to its higher mass recovery, contributing to the overall growth in Mineral Resources.

Project Development and Market Context

The Razorback Iron Ore Project is positioned to produce premium-grade magnetite concentrate, suitable for both blast furnace and direct reduction steelmaking processes. This aligns with the steel sector's increasing focus on decarbonisation and emissions reduction. The project is planned as a conventional open pit mine with a 5 million tonnes per annum concentrate production target, leveraging South Australia's renewable electricity grid and existing infrastructure.

Environmental, social, and governance (ESG) principles are integral to the project's development strategy, with ongoing stakeholder engagement and sustainability initiatives. The company has also lodged a Mining Lease Proposal covering the Razorback and Iron Peak deposits, signaling progress towards operational readiness.

Technical Rigor and Future Outlook

The updated MRE was prepared in accordance with the JORC 2012 Code by Widenbar and Associates Pty Ltd, maintaining consistency with previous geological models and estimation methodologies. No new drilling data was incorporated; rather, the update reflects a refined economic cut-off and reclassification of existing data.

Looking ahead, Magnetite Mines plans further infill and metallurgical drilling to enhance resource classification and test lateral extensions. The company’s focus remains on advancing the Razorback project through detailed technical studies and regulatory approvals, aiming to capitalize on growing demand for high-quality magnetite concentrates in global steel markets.