Test work by Flinders Mines Ltd (ASX: FMS) on its Pilbara Iron Ore Project (PIOP) ore in Western Australia’s Pilbara region has prompted the Perth-based company to look at upgrading of ore it plans to market.
Flinders, which has the Todd family from Wellington as a controlling shareholder, said in its relatively brief September quarter report that maturation work on PIOP ore was continuing.
The company said the widening of market discounts and penalties for iron ore that was lower than 62% Fe, with high alumina and silica impurities appear to be “of a structural nature.”
Flinders said such discounts and penalties could have a material effect on pricing of PIOP ore.
The maturation work will continue into the December quarter. Significant costs will be incurred to complete the work and progress of the work in 2019 will be subject “to the availability of funding.”
Last quarter Flinders detailed some results on targets at the Canegrass prospect, also in Western Australia, and the company was now looking at the potential for gold deposits on the substantial licence.