Magnum (ASX:MGU) share price soars 8%, nears all-time high

The mining outfit shares are within striking distance of its all-time high…

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The Magnum Mining and Exploration Ltd. (ASX: MGU) share price is having a day out today. This comes after the mineral mining company announced it is planning to complete a Definitive Feasibility Study (DFS).

At the time of writing, Magnum shares are up 8.33% to 19.5 cents, just shy of its all-time record of 21 cents.

Magnum powers ahead

Investors are driving Mangum shares higher following the company's significant progress for its Buena Vista iron ore project.

Situated in Nevada, United States, the Buena Vista mine is an advanced magnetite iron ore project purchased by Magnum in October 2020. The wholly-owned project has had $34 million spent on it during the past decade undertaking feasibility studies and licences for long-term production.

According to its release, Magnum advised it has signed an agreement with engineering, procurement, and construction management company, Samuel Engineering.

The deal will see Samuel Engineering complete a DFS and basic plant design for phase 2 production at Buena Vista. This includes producing high-grade iron ore wet concentrate of 68%.

Magnum is targeting the final design to be concluded by September this year, with all necessary permits already obtained.

It is expected the premium 68% iron ore concentrate could be ready for shipment as early as Q3 2022.

The DFS will look into detail at the engineering design and financial model of the iron ore concentrate wet beneficiation plant. The report will be used as a basis for investment discussions and strengthening project finance opportunities.

Previously, Samuel Engineering conducted a pre-feasibility study of the iron ore concentrate plant for Buena Vista in 2013.

Magnum share price summary

It's been a great run for shareholders with Magnum shares accelerating more than 450% over the 12 months. The company's share price has not looked back in 2021, up an astonishing 260% in 6 months.

At today's prices, Magnum presides a market capitalisation of roughly $93 million and has about 478 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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