IMX Resources has marked another milestone for the Cairn Hill Mining Operation with the loading of its 3 million tonne of ore from Port Adelaide.
The ship, with 76,400 tonnes of cargo, is scheduled to set sail for China on 20th December 2012.
Mr Neil Meadows MD of IMX said that "This is another significant milestone for the Cairn Hill mining operation and I congratulate the employees and contractors who have achieved it."
Mr Meadows said that "The implementation of cost reduction initiatives earlier this year and maintaining our targeted shipping rate has enabled the operation to sustain positive cash flow for the company. We look forward to continued success at Cairn Hill."
IMX owns 51% of the Cairn Hill Mining Operation, where it produces a premium coarse grained magnetite copper gold direct shipping ore product at a rate of 1.8 million tonnes per annum.
Termite Resources, a JV company owned 51% by IMX and 49% by Taifeng Yuanchuang International Development Co, operates the mine.
Termite's strategic approach to transport logistics involves railing ore to Port Adelaide in purpose built shipping containers, which are stacked and stored at the port, then tipped into the hold of the ship via a rotating container system.
IMX has fully repaid the Line of Credit with LinQ Resources Fund out of continued positive cash flows from the Cairn Hill Mining Operation in South Australia during the December 2012 quarter.
The facility was previously secured by Termite Resources in May and remains in place providing the joint venture with undrawn headroom of AUD 15 million until 30th May 2013. The operation has been cash flow positive for all of 2012, with cash costs significantly reduced to USD 93 per tonne CIF.
However, Cairn Hill hosts an Indicated resource of 3.8 million tonnes at 47.5% iron and an Inferred resource of 4.6 million tonnes at 45.8% iron.
Importantly, there is the potential for low cost capital continuation of Cairn Hill, with a capital estimate for phase 2 of USD 5 million to USD 10 million and operating costs of USD 100 per tonne CIF.
