Legacy Iron Ore (ASX:LCY) has reported an updated resource estimate on its Mt Bevan iron ore project in Western Australia. The JORC-compliant resource estimate shows an indicated resource of 322 million tonnes at an average grade of 34.7% Fe and an inferred resource of 847 million tonnes at an average grade of 35%Fe.
Unfortunately the Phosphorous levels are quite high at approximately 0.055%, whereas offtakers prefer a level of approximately 0.01%. The same applies for the sulphur levels, which are approximately four times higher than what’s acceptable. This means that even though Mt Bevan could ultimately contain several billion tonnes of iron ore, investors should be aware of the level of impurities in its ore which might have an impact on the economic viability of the project in a later stage.
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Disclosure: The author holds no position in Legacy Iron Ore. Please see our disclaimer for current positions.
