Admiralty Reports 80,548 Tonnes Mined as Mariposa Expansion Progresses
Admiralty Resources reported ongoing progress at its Mariposa iron ore project in Chile, including infrastructure approvals and production ramp-up, but operations were temporarily halted by severe flooding in July 2026.
- Regulatory approvals secured for electricity and alternative export routes
- Quarterly mining totaled 80,548 tonnes, down 16% from prior quarter
- 23 kV transmission line commissioned, cutting electricity costs
- Severe July flooding caused operational suspension and access damage
- 1 million tonne expansion plan progressing with infrastructure upgrades
Mariposa Production and Infrastructure Progress
Admiralty Resources NL (ASX:ADY) continued to advance its flagship Mariposa magnetite iron ore project in Chile during the June quarter of 2026, despite facing operational setbacks from severe weather in July. The quarter saw the company secure key regulatory approvals including the electricity connection and alternative transport routes to Las Losas and Guacolda II ports, enhancing export flexibility and reducing reliance on its original logistics plan.
Mining output for the quarter totaled 80,548 tonnes of ore, a 16.1% decline from the previous quarter, producing 31,648 tonnes of iron ore concentrate at an average grade of 65% Fe. The production dip reflects a combination of ramp-up dynamics and operational challenges ahead of planned blasting activities in July aimed at increasing ore volumes.
Power Supply Milestone and Expansion Efforts
A major infrastructure milestone was reached with the commissioning of a 23 kV transmission line providing direct grid power to Mariposa, operational since late April 2026. This development is expected to significantly reduce electricity costs previously incurred from fuel generator reliance. Concurrently, Admiralty is pushing forward with its ambitious one million tonne per annum expansion plan, progressing installation of tailings filtration systems, magnetic separators, and road upgrades to support higher production capacity.
Severe Weather Impact and Recovery
Mid-July brought a severe weather front to the Atacama Region’s Huasco Province, where Mariposa is located. Exceptional rainfall caused flooding, river overflows, and a state of catastrophe declaration. The mine’s access road was damaged and electricity supply was cut for several days, forcing a temporary suspension of mining and processing activities. Admiralty is currently focused on restoring safe access and repairing affected infrastructure, with production expected to remain halted for several weeks during recovery.
Ongoing Exploration and Regional Projects
Exploration drilling continued with 3,303 metres completed at Mariposa, including a 300-metre campaign at the La Chu Lula mining area, aimed at upgrading resource classifications. Additionally, diamond drilling commenced at the Cooper deposit of the El Cojin copper project, with 700 metres planned. Other Chilean iron ore projects, Soberana and La Chulula, are advancing with planned blasting and ore transport activities in July.
Financial Position and Executive Remuneration
Admiralty reported a net loss after tax of $4.05 million for the 2025 financial year, widening from a $599,000 loss the prior year, with cash on hand at $1.75 million as of 30 June 2025. Post-quarter, the board formalised remuneration arrangements for Executive Chairman Bin Li, including back pay for his unpaid service since appointment and ongoing monthly fees, recognising his significant personal commitment to Mariposa’s development.
Bottom Line?
Admiralty’s Mariposa project shows tangible progress in infrastructure and resource development, but the recent flooding highlights operational vulnerabilities that could delay production ramp-up in the near term.
Questions in the middle?
- How quickly can Admiralty restore full production at Mariposa following flood damage?
- Will ongoing drilling campaigns translate into upgraded resource classifications to support expansion?
- How will power cost savings from the new transmission line impact project economics amid rising operational challenges?
