Venture Minerals begins Riley Iron Ore Mine plant commissioning with first shipment on track this quarter

Venture Minerals Limited (ASX:VMS) (OTCMKTS:VTMLF) has begun commissioning the wet screening plant at its Riley Iron Ore Mine in Tasmania after completing various stages of the installation phase. A total of 100% of the structural steel has been erected, 100% of the mechanical installation has been completed, and the power station is now operational with electrical installation and piping near completion. As commissioning continues, previously mined ore will be put through the plant, as part of the process of ramping up towards steady state production to meet the target of first ore shipment this quarter. “First ore shipment on track” Venture Minerals managing director Andrew Radonjic said: “Venture’s Riley development team has successfully commenced commissioning of the plant. “Achieving this milestone of the installation schedule for the plant, keeps the first iron ore shipment on track for this quarter. “The recent record iron ore price makes it a perfect time for the company to transform from explorer to producer.” Shares have been as much as 12.5% higher to A$0.135s, approaching the new A$0.14 high of more than seven years established earlier this month. Location map for the Riley Iron Ore Mine with transport route from mine gate to shipping. Strong iron ore market outlook Venture continues to prepare for full operational start-up as the plant nears completion and the company will recommence mining activities this week with Launceston-based Shaw Contracting, whilst Qube began preparation for the commencement of ore haulage. Current Riley Mine economics are well above August 2019 feasibility numbers which were based on a US$90/tonne 62% iron price, primarily due to higher iron prices of around US$210/tonne 62% iron price (based on spot pricing of US$209 per tonne as of May 14, 2021, referenced to the Platts 62% Fe Iron Ore index) and supported by a strong market outlook. Notably, the outlook for iron ore prices for the rest of the year remains positive due to continued demand generated by Chinese government infrastructure spending and ongoing supply concerns from Brazil.