Royal Resources has decided on an option from its pre-feasibility study on its South Australian Razorback iron ore project which is set to use new transport and storage technology.

The $2.2 billion project, around 240km north of Adelaide, will mine 40 million tonnes of mainly low grade magnetite ore which will undergo beneficiation to produce 8.2mtpa of concentrate grading 67 per cent iron.

The concentrate will be piped as slurry from the mine operations to port where it will be stored on a permanently moored Cape size vessel and then transferred to other ships for transport.

Royal Resources chairman Phil Crabb said Razorback’s resource of 1.8 billion tonnes will see a long life for the mine.

“The quality and quantity of Royal’s mineral resources will underpin the long term success of the Razorback project,” he said.

“The PFS detail provides a broad perspective on the progress of the project and the board’s vision of bringing into existence a major new source of premium quality iron concentrate.

“I would like to thank everyone involved…and look forward to working with them as we turn our vision into reality.”