CZR Resources announced that drilling is underway as part of the Company's strategy to grow the iron ore inventory and production rate at its Robe Mesa iron ore project in WA's Pilbara. The drilling results will form part of the DFS, which aims to increase the forecast production rate from the 2Mtpa contained in the PFS to 3Mtpa. As part of this growth strategy, CZR is drilling the strike extension north of the current Resource.

The mineralisation remains open in this direction and the Company recently secured heritage approval to commence drilling. Infill drilling will take place to the south to allow Reserve estimates and mine plans to be completed for the Lower channel iron deposit (CID), which was excluded from the PFS. Metallurgical diamond core drilling was completed on 19 July and samples are now being prepared for transport to Perth for metallurgical test work.

The results will be used to finalise process plant flow sheet design, density measurements for Resource and Reserve updates, and importantly bulk samples for sinter test work and customer trials, including a secondary low-grade product. CZR Managing Director Stefan Murphy said the Robe Mesa DFS was well advanced, with drilling to expand the mine life and production rate now in full swing. In addition, CZR successfully completed environmental baseline studies covering the mine area, ancillary infrastructure and potential haul routes during June and July.

This forms part of the environmental reporting requirements and submissions to government regulators to allow mining to commence at Robe Mesa. CZR will provide further updates on its Resource and Reserve development drilling and mine plans over the coming months, along with metallurgical test work and export logistics planning. CZR's 85%-owned Robe Mesa deposit sits within the Robe Valley Channel Iron Deposits (Robe Valley CID).

The Robe River JV (Rio Tinto 53%, Mitsui 33%, Nippon Steel 14%) has been mining Robe Valley CID since the 1970s and has current mining operations at Mesa A, Warramboo and Mesa J, with rail linking to export facilities at Cape Lambert. CZR completed infill drilling in December 2021 which identified extensive DSO mineralisation outside the previous resource estimate and PFS pit designs, particularly in the Lower CID unit. In June 20221, CZR announced a significant 52% increase in its Mineral Resource to 37.5Mt while maintaining the same iron ore grade, with similar specification to the adjacent Robe River JV, operated by Rio Tinto.