Admiralty Resources Energises Mariposa Transmission Line to Cut Power Costs

Transmission Line Commissioned to Secure Grid Power

Admiralty Resources (ASX:ADY) has hit a key operational milestone by commissioning the transmission line that will deliver direct grid electricity to its Mariposa Iron Ore Project in Chile. Energised through the Agrosuper substation at 23 kV, the new connection promises a more reliable and cost-effective power supply compared to the fuel generators previously used onsite. This shift is expected to materially reduce electricity expenses, a significant factor for a mining operation in a remote location.

Transformer Energisation and Pending Load Testing

The commissioning included the successful no-load energisation of Transformer No. 1 (TR1), rated at 23/10 kV and 5 MVA capacity. However, the full commissioning is not yet complete. Transformer No. 2 (TR2), which steps down voltage to 400V for onsite distribution, and the 400V busbar in the electrical room are still awaiting energisation. These steps hinge on the processing plant beginning to operate under load, which requires the completion of internal electrical connections and installation of protection systems.

The Mariposa Project team is actively progressing with these internal electrical works and conducting load tests to transition operations fully onto the transmission line. This phased approach reflects the complexity of integrating grid power into a mining operation and the need to ensure safety and reliability before full commissioning.

Mariposa Project’s Strategic Infrastructure and Resource Base

Mariposa holds a JORC 2012-compliant mineral resource of 105.6 million tonnes of iron ore, including 36.3 million tonnes of ore reserves at a 15% total iron cut-off grade. The project benefits from strong infrastructure proximity, located just 6km from a railway line, 70km from a port, and 25km from the town of Vallenar, with ready access to road and high-voltage power lines. This infrastructure underpins Admiralty's ambition to ramp up production capacity from 2025 onward.

Admiralty’s operational progress at Mariposa, including securing major iron ore sales contracts, has been documented alongside financial pressures evidenced by recent cash outflows. The commissioning of the transmission line fits into this broader narrative of advancing production efficiency and cost control, which is critical given the company’s tight cash runway and $3.1M quarterly outflow and its efforts to boost output and secure sales deals with Trafigura and Compañía Minera del Pacífico.

Broader Exploration Footprint and Project Management

Beyond Mariposa, Admiralty maintains a diversified portfolio including exploration projects in Chile’s Harper South district and Pampa Tololo, as well as a cobalt-nickel project in Western Australia’s Pyke Hill. The company has engaged Hainan Xinlei Management Co Ltd to provide project finance, management, and operator services for Mariposa, indicating a strategic approach to managing operational risks and financing challenges.