Macro Metals has announced that its subsidiary, Macro Mining Services (MMS), has secured a mining services contract from RE:GROUP for the Extension Iron Ore Project in Western Australia (WA).
In July 2024, Macro Metals signed an agreement to earn an 80% interest in four manganese tenements in the Eastern Pilbara region of WA from Firebird Metals.
The project, owned by privately held company Project Rusty, spans 27.6 square kilometers and is strategically positioned near Port Hedland in the Eastern Pilbara region. It holds an indicated mineral resource of 16.1 million tonnes (mt) at 54.2% iron. Project Rusty is also the owner of the Extension Iron Ore Project.
The company has appointed RE:GROUP as the head mining services contractor, with MMS exclusively delivering all technical services, including crushing and screening, under a build-own-operate model. Under the contract, MMS will verify prior metallurgical test results, which showed that dry screening could yield 11.29 million tonnes (mt) of iron ore at a high grade of 57.16% iron.
MMS will also engage with the Pilbara Ports Authority to secure an export allocation of 1.5–2 million tonnes per annum (mtpa) while also assessing untested mineralization outcrops to potentially extend the mine’s operational life. The contract also ensures that the company will be compensated for its technical services and joint operations with RE:GROUP, inclusive of mine site establishment, drilling and blasting, mining, and load and haul operations. The cost-plus agreement includes a 15% markup on these services.
Reports show that Macro directors Simon Rushton and Rob Jewson each hold a 27.3% share in Rusty. Macro Metals may purchase Rushton’s stake in Project Rusty through the issuance of 175 million fully paid ordinary shares, pending shareholder approval.
Rushton said: “This life of mine, mining services contract with RE:GROUP locks in revenue and margins for our business and creates a very solid foundation for the contracting order book we are currently building.”
“MMS’ scope of work under this contract is firmly aligned with the business model we are pursuing; namely that we look to perform as many aspects of the supply chain as possible from pit to customer.”he added
MMS is currently finalising a detailed scope of action and cost estimation, aiming to secure the final approval, including bulk sample permits, along with the project execution plan that outlines the use of Macro’s hub, which provides logistics, accommodation, and raw materials support. It is located 28km east of Utah Point Bulk Handling Facility in Port Hedland, for off-port stockpiling and possible product blending.
Source: Mining Technology