why i like roy

I have been a supporter of ROY these past few weeks, the reason is the Announcement that they have aquired the Razor Back Magnetite prospect in Sth Aust. You will have to read this Ann to get a feel for just how large this deposit could turn out the logistics, and the work already been done by the Sth Aust Govt on this project.

Feed back to me from mates was that magnetite is not the in thing in the market place with punters so I have taken and abstract from and article that was about Gindalbie and their magnetite project in the midwest of WA. This will give readers and idea why ROY are very excited about this deposit.

ARTICLE :

Gindalbie explains that magnetite ore has lower FE content and must be upgraded to make it suitable for steelmaking. It is suitable for processing into ore pellets for use in modern steel production and currently accounts for approximately 50% of global iron ore production. The magnetic properties of magnetite enable it to be readily refined into an iron ore concentrate.
While magnetite is generally a lower grade deposit, it is globally accepted as a viable and high-quality feedstock for the production premium quality, low impurity steel.
The processing route for magnetite requires, crushing, screening, grinding, magnetic separation filtering and drying. The final product is a high iron grade magnetic concentrate (+65% Fe), with typically very low impurities. Further processing involves the agglomeration and thermal treatment of the concentrate to produce pellets, which can be used directly in a blast furnace or direct reduction steel- making plant.
The additional processing cost for the production of magnetite can be offset by the premium price which it attracts from steel mills because of the high iron content compared to benchmark DSO hematite products.
Gindalbie further notes, “magnetite has been greatly misunderstood and undervalued by the market because it has lower iron content than hematite, magnetite has been regarded in Australia as a less attractive proposition; however the availability of cheaper energy combined with increased global iron ore and steel demand, is changing this perspective”.
Magnetite projects today are capable of producing high-quality concentrate grading up to 68 – 69% FE, which is higher grade than many of the Pilbara hematite lump and fines ores currently being produced. Also it is well established that hematite grades are declining globally and impurity levels are rising while the demand for quality, premium steel from China and India is continuing to increase. With hematite grades declining, high grade magnetite concentrate is becoming and increasingly sought after product.