Strike Resources Limited is an ASX listed resource company which is currently focussed on developing the Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Magnetite Iron Ore Project in Peru, from which it achieved its maiden shipment of 35,000 tonnes of high grade direct shipping iron ore (DSO) to customers in China in August 2021.
Strike is also the largest shareholder in battery minerals company Lithium Energy Limited (ASX:LEL).
Strike has been operating in South America since 2005, where it has been principally focused on developing its Apurimac Iron Ore Project in Peru, recognised as one of the highest grade, large-scale magnetite projects in the world with the potential to support the establishment of a significant 20 Mtpa iron ore operation.
Strike’s portfolio of projects therefore provides investors with exposure to a near term iron ore production potential in Australia, a world class established asset in the Apurimac Iron ore Project.
Paulsens East Iron Ore
The Paulsens East Iron Ore Project (Strike:100%) located in the Pilbara, Western Australia.
The Project consists of a three-kilometre-long outcropping high-grade hematite ridge, containing a JORC Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe), including a JORC Probable Ore Reserve of 6.2 million tonnes at 59.9% Fe, 7.43% SiO2, 3.77% Al2O3 and 0.086% P (at a cut-off grade of 55% Fe).
Strike plans a 1.5 Million tonnes per annum (Mtpa) production schedule of direct shipping ore (DSO) over a minimum four-year LOM (totalling approximately 6.0 Million tonnes), underpinned by the Probable Ore Reserve of 6.2 Million tonnes (within the Indicated Mineral Resource of 9.6 Million tonnes).
An open cut mine is proposed, with an average forecast waste to ore ratio of 3.0 over the first four years of mining. Ore will be crushed and screened to produce DSO Lump and Fines products, with estimated average product Lump grade of 62% Fe and Fines grade of 59% Fe over the LOM. Metallurgical testwork indicates that a 75/25 (or higher) Lump/Fines split can be expected where Lump ore typically attracts a significant price premium compared to Fines.
Processed Lump and Fines products will be trucked from the mine to the Utah Point Multi-User Bulk Handling facility at Port Hedland (Utah Point) or the Port of Ashburton at Onslow for export to customers.
Mining, crushing and screening and haulage operations will be undertaken by specialist contractors with overall supervision and management provided by Strike employed personnel.
Strike has completed a Feasibility Study on the Project and is targeting a Project development and execution timetable for first ore production to commence in 2022.
 Refer Strike’s ASX Announcement dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category at Paulsens East Iron Ore Project.
Apurimac Iron Ore Project (Peru)
The Apurimac Iron Ore Project is recognised as one of the highest grade, large-scale magnetite projects in the world with the potential to support the establishment of a significant 20 Mtpa iron ore operation.
The exceptionally high grade 57% Fe is almost twice as high as magnetite deposits developed in Australia; ore bodies are coarse grained and soft, resulting in cheaper processing costs once in production.
A pre-feasibility study completed in 2008 and updated in 2010 on the Apurimac Project indicated clear potential for development of a world-class iron ore project:
- JORC Resource of 269Mt of iron ore at Apurimac of 57.3% Fe (142 Mt Indicated at 57.84% Fe and 127 Mt Inferred at 56.7% Fe).
- Mineralisation predominantly high-grade, coarse-grained magnetite providing comparatively high mass recoveries (>60%) at coarse grind size (>500 microns).
- Excellent exploration potential within current concessions with several targets containing ironstones grading >60%Fe in similar geological settings to main Opaban concessions.
- Base case of 20Mtpa of concentrate produced by open pit mining and processing 20 – 27Mtpa of ore with transport of the high grade (>66%Fe) product to the coast via a slurry pipeline for drying and shipment to customers.
- Attractive life-of-mine operating expenses (2010) of US$ 17 – 20 per tonne of product. · Estimated capital expenditure (2010) of US$ 2.6 – 2.9 billion, competitive with other major iron ore projects at the time.
An initial drilling program at Apurimac established 269 Mt resources of high grade, coarse-grained magnetite with an average grade of 57.3% iron. Of this, potentially 67 million of Direct Shipping Ore (DSO) at an average grade of 61.5% Fe has been identified.