Riley DSO deposit
The 100% owned Riley DSO Project is located 10km from the Mt Lindsay Tin-Tungsten Deposit and occurs as a hematite rich pisolitic and cemented laterite. The deposit is all at surface, located less than two kilometres from a sealed road that accesses existing rail and port facilities.
A maiden resource statement of 2mt @ 57% Fe was defined in 2012 which resulted in the Company doubling its overall DSO resource base, including the Livingstone Deposit to 4.4mt @ 57% Fe.
Resource Statement - Riley DSO Project Tasmania
Reserve Statement - Riley DSO Project Tasmania
Following completion of the new resource Venture engaged independent mining engineers, Rock Team to complete mining studies on the deposit and produce a reserve statement. With all the hematite resources at Riley located at or near surface, the study delivered a 90% conversion rate of resource to reserve.
Having achieved all necessary approvals for the development of the project as well as secured both debt and equity requirements, the Company was well placed to take advantage of higher iron ore prices throughout 2013. Unfortunately delays suffered due to on-going appeals to the project’s approvals saw the production timeline delayed until mid-2014, which coincided with a marked deterioration in the economic environment driven principally by a substantial decline in the iron ore price.
Although the Company made the decision to suspend operations in August 2014, Venture had already completed extensive pre-production work at the Riley Project putting in place all the necessary requirements to commence mining. This work has placed Venture in a strong position should the iron ore price improve and afford the Company the opportunity to commence production, on relatively short notice, and take advantage of any future appreciation in the iron ore price.
Late June 2015, Venture received positive news from the Federal Court dismissing the appeal against the environmental approvals for the Riley DSO Project. The decision effectively delivers Venture unencumbered approvals for any future development of the Riley iron ore mine. The Federal Court decision in both the original case and the recent appeal awarded costs in favour of Venture. The Company will continue to actively seek the recovery of all legal costs associated with both cases.