Admiralty Resources Secures Key Sales Deal as Mariposa Production Advances

Production Milestone and Sales Agreement

Admiralty Resources NL (ASX: ADY) has taken a decisive step forward at its flagship Mariposa Iron Ore Project in Chile, announcing the signing of a sales agreement with Compania Minera del Pacifico (CMP) for 80,000 tonnes of final product. By late January 2025, the company had already delivered 60,000 tonnes to the Port of Totoralillo, with the remaining 20,000 tonnes expected in early February. This milestone underscores Admiralty’s transition from development to active production, with the pellet feed grade averaging 66% Fe and ambitions to improve quality as full-scale mining ramps up.

Infrastructure and Energy Developments

Critical infrastructure approvals have also been secured, notably from Coordinador Electrico Nacional (CEN), enabling Admiralty to access electricity via a transmission line. The local firm Tucapel has been engaged to facilitate the connection and build a substation, with power anticipated to be operational by August 2025. Complementing this, Admiralty has inked an electricity supply agreement with Grenergy Chile, a leading renewable energy provider, reflecting a strategic commitment to sustainable operations.

Operational Enhancements and Workforce Expansion

On the ground, the mining team has progressed construction of the tailings dam wall and implemented dust mitigation measures on heavily trafficked mine roads. New mining equipment ordered through Hainan Xinlei Mining Management is expected imminently, aimed at boosting both production quality and volume. Workforce numbers have grown, with five additional operations personnel onboarded in late 2024 and ten more anticipated shortly, signaling Admiralty’s intent to scale operations efficiently.

Environmental and Safety Commitments

Environmental stewardship remains a priority, with consultants preparing a separate environmental approval (DIA) to enable use of a road through Huasco city for access to the nearer Las Losas port. Safety protocols are robust, featuring daily pre-shift meetings and specialized training for new hires, particularly for high-altitude work. Measures to protect local wildlife, such as the guanaco population, have also been integrated into operational planning.

Corporate and Financial Context

Admiralty’s corporate activities include the recent completion of a $7 million entitlement offer, well supported by shareholders and partially underwritten, strengthening the company’s financial position. The partnership with Hainan continues to underpin project costs, allowing Admiralty to focus capital on operational advancement. Additionally, EY has been engaged as accounting and financial consultants to support the company’s growth trajectory.

Looking Ahead

While the Mariposa project is the current focal point, Admiralty is also advancing exploration at nearby prospects such as Soberana and La Chulula, with positive ore results and environmental approvals underway. The company’s Australian cobalt and nickel project, Pyke Hill, remains on hold this quarter, reflecting a strategic prioritization of Chilean iron ore assets.