The Mineral Resources Ltd (ASX: MIN) share price is slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $24.56. In morning trade on Wednesday, shares are changing hands for $24.34 apiece, down 0.9%.
For some context, the ASX 200 is up 0.5% at this same time.
Here's what investors are mulling over today.
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Mineral Resources share price lower on update
The Mineral Resources share price is in the red following the release of an update of the miner's mineral resources and ore reserves for its Onslow Iron Project. All figures are current to 31 March.
Located in Western Australia, Onslow Iron is being developed by MinRes in partnership with the Red Hill Iron Ore Joint Venture.
The ASX 200 miner reported that its mineral resources have increased by 89% since September 2023 to 744 million tonnes at 56.3% Fe (iron).
Mineral Resources stock is sliding despite the diversified miner reporting that ore reserves at Onslow Iron increased by 73% since September 2023 to 359 million tonnes at 57.5% Fe. The ore reserve was re-estimated to account for mining depletion through to 31 March.
Management credited the big increase in resources to closer spaced drilling, which was supported by "comprehensive remodelling and reclassification of additional deposits".
Importantly, the grades of the resources for both iron and other deleterious elements were said to remain consistent with what was reported in September 2023.
MinRes said the update confirms Onslow Iron as a long-life, low-cost project, underpinning the growth of its Iron Ore and Mining Services divisions.
What did management say?
Commenting on the updated reserves that have yet to lift the Mineral Resources share price today, managing director Chris Ellison said, "The significant growth in Onslow Iron's Mineral Resources and Ore Reserves highlights the outstanding quality of this long-life, low-cost project."
Ellison added:
These upgraded figures reaffirm the confidence we have always held in Onslow Iron's potential to operate for decades to come. Our focus remains on building on this strong foundation, unlocking further potential in the West Pilbara and delivering ongoing value to all stakeholders.
With the production ramp-up accelerating in recent weeks, we are well on track to establish Onslow Iron as one of Australia's premier iron ore operations.
I'm proud of the team's dedication as we progress development and create lasting benefits for our partners, shareholders and the wider community.
With today's dip factored in, the Mineral Resources share price is down 69% over 12 months.
