Strike Resources Limited : - Market Announcement, Paulsens East Iron Ore Mining Operations Optimised

Published: 2021-09-14 11:10:07 ET SRK.AX

Strike Resources Limited (ASX: SRK) (Strike) is pleased to confirm that it has recently completed a review of the proposed production ramp up and export logistics of iron ore from its Paulsens East Iron Ore Mine.

This review was undertaken as part of a pre-Final Investment Decision (FID) process by Strike with three principal objectives: (1) To decrease the time to 'first ore on ship' and review the current mining plan of 1.5 Mtpa to maximise early cashflow; (2) To investigate opportunities to create cost efficiencies in the transport of iron ore to Port with a view to maximising Project profitability and (3) Defer significant capital expenditures to be funded where possible from forecast cashflows. As a result of this review Strike now advises a significantly optimised production strategy as follows: (a) An expedited production ramp up with the objective of having first production late 2021/early 2022 with steady state production ramping up during 2022 to an annualised rate of 1.5 Mtpa

Mine ramp up to a full annualised production of 1.5Mtpa - 2.0Mtpa in two stages, the first being the export of up to 400,000 tonnes of surface detrital and low strip ratio material to be shipped during CY 2022 through Utah Point in Port Hedland and the second stage being an annualised production rate of 1.5 - 2Mtpa transitioned from Utah Point to the Port of Ashburton in Onslow to reduce trucking distance from mine to Port.

ABOUT STRIKE RESOURCES LIMITED

Strike Resources Limited is an ASX listed resource company which is developing the 1.5 Mtpa Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has commenced mining of high-grade surface deposits and entered into an offtake agreement with an international iron-ore trading firm to export the 'Apurimac Premium Lump' DSO product of 65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was recently spun-out of Strike under a $9M IPO. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.

FORWARD LOOKING STATEMENTS

This document contains 'forward-looking statements' and 'forward-looking information', including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of the Company, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'is expecting', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes', or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might', or 'will' be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward-looking information is to provide the audience with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. The Company does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.

Contact:

Tel: +61 8 9214 9700