Iron Ore Production Ramps Up in Peru HIGHLIGHTS
Significant Company milestone achieved with 20,000 tonnes of high-grade direct shipping ore (DSO) mined from the Apurimac Project in Peru since late December 2020, with ore stockpiled locally for crushing and screening.
Strike is initially targeting annualised production of ~125,000 tonnes of iron ore from specific portions of concessions comprising the Apurimac Project.
Potential exists to significantly expand production through ore from multiple sites within the Apurimac Project, once steady state operations are achieved.
Targeting production of a high grade “Apurimac Premium Lump” DSO product of 64-65% Fe with low impurities.
Current strong iron ore price (currently US$168 per tonne1) and high lump premium (of an additional potential ~US$33 per tonne) indicate a significant near term positive cashflow opportunity.
Production costings have been completed with anticipated FOB cost at Pisco Port of less than ~US$70 per tonne.
First cashflow from sales expected in the June 2021 Quarter.
Strike Resources Limited (ASX:SRK) (Strike) is pleased to provide an update on a significant milestone in company operations in Peru relating to its 100% owned Apurimac Iron Ore Project.
Strike confirms that since mining of high-grade surface deposits of iron ore from the Apurimac Project concessions commenced in late December 2020, over 20,000 tonnes of direct shipping ore (DSO) has been mined and transported by trucks for local crushing and screening, with over 6,000 tonnes of material having been crushed to date.
Strike is now ramping up operations to increase throughput both via mining operations and the engagement of a second crushing and screening plant to increase crushing capacity to 1,000 tonnes per day.
Once Strike has successfully crushed approximately 20,000 tonnes of material, it plans to progressively transport the Apurimac Premium Lump DSO product to a stockpile at the Port of Pisco, (located approximately 570km by road from the Apurimac Project) using locally sourced trucks.
        1 62% Fe Index (CFR China), as at 16 March 2021 www.strikeresources.com.au
STRIKE RESOURCES LIMITED
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