Strategic Minerals Plc, the magnetite focused iron ore producer and exploration company, is delighted to announce first contracted revenues from its Cobre Stockpile Project in New Mexico to customers in North America.
The initial delivery of the 1,200 tonnes contracted is currently being trucked off the site ahead of the completion of the rail-spur upgrade at the property which is on schedule for completion late March 2012. After that point the Company anticipates deliveries will be rail-freighted from Cobre. The rail-spur will allow up to 40,000-60,000 tonnes a month to be freighted from the site.
Under Phase 1 of the Cobre Stockpile Project, Strategic Minerals holds the production rights to 1.5 million metric tonnes of shipment ready magnetite at the site. The average grade of the JORC assessed stockpile is 61.7% Fe of which an estimated 800,000 metric tonnes is at 64% Fe (as announced 21 September 2011).
The current end customers for the Cobre magnetite include a US agriculture business and a US concrete manufacturer. Fertilizer companies use magnetite to improve the speed and efficiency of ammonia synthesis in the fertilizer production process; within the concrete industry, magnetite is typically used to produce heavy or strengthened concrete.
Steven Sanders, Chairman of Strategic Minerals, commented: "We are delighted to now be freighting from the Cobre site. We view these as important proof of concept shipments as they illustrate how revenues from production ready assets such as Cobre can be used to underpin the wider development of the business. We look forward to scaling the revenues rapidly at Cobre particularly when the rail-spur is completed."