FeOre (ASX FEO) has demonstrated
that its Ereeny Project in Mongolia is capable of producing a 62% iron grade
concentrate following the completion of a process and processing facility
study.

Encouragingly, with the establishment of the processing technique developed,
the project is likely to yield high grade iron ore, which will deliver an
optimised return on investment.

The study, which was conducted by China Minmetals Corporation subsidiary
Changsha Research Institute of Mining and Metallurgy Co., showed this grade
could be achieved through industry standard multi-stage grinding and staged
magnetic separation processing.

The primary target of the study was to recommend a magnetic processing design
for the Ereeny Project with a target iron concentrate product TFe grade greater
than 62%, TFe recovery of greater than 75% and mFe recovery of greater than
90%.

The study resulted in an optimised processing design which achieves a
concentrate of 65.2% for primary ore with a TFe recovery of 89.89%.

The concentrate from processing of mixed ore resulted in a TFe of 63.4% with a
TFe recovery of 70.58%.

FeOre is now in the process of incorporating the processing study results into
the mine plan design to confirm the mine construction requirements and
equipment needs.

The company”s flagship Ereeny Project, in which FeOre holds an 80% stake, hosts
an Indicated and Inferred JORC Resource of 108.7 million tonnes at 37.3% TFe.

There is substantial additional Resource potential with an unexplored hill
about 800 metres to the south of the current Resource displaying similar
outcrop characteristics. The southern hill is around twice the size of the hill
containing the current Resource.

The project has a granted mining licence covering around 3.26 square
kilometres, with mineralisation extending from surface to depths of over 400
metres.

Importantly, the project represents a low capital entry FeOre, significantly
lower than competitors.

FeOre have previously secured a 10 year offtake agreement and a 10 year
logistics agreement with China Railway Group subsidiary China Rail Mongolia
Investments.

(MENAFN –
ProactiveInvestors – Australia)