Chinova Resources is preparing to restart the Merlin mine south of Cloncurry, which the company says hosts the world’s highest grade molybdenum-rhenium resource.

The Merlin deposit sits within Chinova’s Osborne operation, whose lease runs more than 140km by 45km.

Exploration manager Dr Ana Liza Garcia-Cuison told the Cloncurry Meeting of the Mines the project held a resource of 6.1Mt at 1.27 per cent molybdenum and 23ppm rhenium.

Dr Garcia-Cuison said the time had come as demand matured for the mineral, used to strengthen metal alloys in industry, space and defence applications.

“Our approach to recommissioning is deliberately staged,” she said.

“The principle is straightforward. Reduce uncertainty before scaling up commitment, confirm the resource, define the route to product, then assess the mine infrastructure and development required to operate safely and effectively.”

The company drilled about 6000m of infill holes in the past year, she said, and had begun refurbishing the Osborne plant while assessing the underground.

Earlier work gave the project a head start, with an existing 3.4km underground decline already in place, she told the conference.

“The important point here is that there is a defined underground development pathway from what already exists to future production.”

Related: Full steam ahead for new Merlin mining push

The Osborne plant was central to that approach, she said.

“The plant is being refurbished and optimised for molybdenum processing with an initial capacity of 500,000 tonnes per annum,” Dr Garcia-Cuison said.

“Importantly, the plant is designed to provide flexibility for molybdenum, copper and gold ore, and that gives us a practical pathway from the underground mine to processing to a molybdenum concentrate product.”

She said other gold, copper and critical mineral projects were in the pipeline across the company’s ground.

“Currently we have 280-plus prospects in the tenement. We have 23 granted EPMs and 28 granted mining leases, and we are actively exploring for critical minerals, copper and gold.”

She framed Merlin’s restart as the first step in a longer plan.

“Successful recommissioning (of Merlin) can also provide a platform for what comes next … First, restart the mine. Merlin is an existing asset with underground development, infrastructure and a defined pathway toward recommissioning,” she said.

“Merlin already has a head start underground. The next chapter depends on what we build around it.”