Additional Information
Market: ASX
Sector: General Mining
Latest Price: 0.02  (0,00%)
52-week High: 0.45
52-week Low: 0.02
Market Cap: 0.76M
1 year chart
1 day chart
Nevada Iron

Nevada Iron (ASX: NVI) is developing the Buena Vista Iron Project in Nevada, U.S. Buena Vista is an advanced pre-development iron ore project with potential for early production.

Richmond Mining receives key Special Use Permit to develop Buena Vista iron ore mine in Nevada

14th Jun 2011, 1:56 am

Richmond Mining (ASX: RHM) has taken a major step forward at the Buena Vista Iron Project in Nevada, U.S., with the granting of the Special Use Permit (SUP) by Churchill County.

Churchill County’s Planning Commissioners unanimously approved the (SUP) to allow development of the Buena Vista mine.

Max Nind, managing director of Richmond said, “The granting of this permit demonstrates the County’s enthusiasm for a regionally beneficial project and provides Nevada Iron with the ability to secure all Churchill County construction related permits for mine and mill infrastructure.”

Using Churchill County’s wide-ranging SUP approval, Richmond's subsidiary Nevada Iron will now complete the application process for the required permits from the State of Nevada to allow mine buildout.

Late last month in another boost for Buena Vista, Richmond signed a framework agreement with Hebei Iron & Steel Group Co., Ltd. (HBIS) to create a strategic alliance to accelerate the development of the project.

The agreement is mutually beneficial for both companies, with Richmond gaining strategic support to secure 100% of the financing for project development, and HBIS obtaining a long term stable supply of product to be underpinned by its shareholding in the company.  HBIS, one of the largest steel groups in China, has a combined annual steel output of 40 million tonnes.

Strong project returns forecast

A recent Feasibility Study into Buena Vista indicated strong returns from the development of the Nevada project including an Internal Rate of Return of 41% with first production scoped for December 2012.

The study, which is based solely on accessing ore from the West deposit, investigated producing 1.75 Mtpa (million wet tonnes per annum) of concentrate for an initial 10 years of operation.

Importantly the mine will be the producer of a high grade iron ore concentrate with very low impurities, assaying 66-69% Fe; 1.5-4.5% SiO2; <1% Al2O3; 0.003% P; and 0.003% S.

The concentrate will be sent via a 40 km slurry pipeline to a rail siding located at Colado Junction, 10 kilometres northeast of Lovelock, and then transported by rail to a Port in the San Francisco Bay/Delta Region of California.

The existing resources and known exploration targets have the potential to significantly expand the Project’s life past the initial 10 years. This potential should underpin a long-life operation at Buena Vista.

At current valuation of $0.50, Richmond Mining is valued significantly below its emerging iron producer peers, with significant scope for re-rating based on near term production parameters.


No investment advice

Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".

You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here