What's Happening?
Hawsons Iron has announced a significant milestone for its wholly owned Hawsons Iron Project in New South Wales, revealing a probable ore reserve estimate of 2.3 billion tonnes. This estimate is part of the company's Prefeasibility Study (PFS), which outlines a project development strategy aiming to produce up to 12 million tonnes per annum of high-grade iron-magnetite concentrate over a 26-year mine life. The PFS has provided the company with the confidence to advance towards a full Feasibility Study, highlighting a pre-tax internal return rate of 10.93% and a pre-tax net present value of $1,360 million at a price of US$140 per tonne. The study has also identified key risks and opportunities that will be addressed in the upcoming Feasibility Study.
Why It's Important?
The announcement of a substantial ore reserve at the Hawsons Iron Project is a pivotal development for the company and the iron ore industry. The project's potential to produce high-grade, low impurity iron concentrate aligns with the growing international demand for direct reduced iron (DRI) feedstock, which is crucial for producing 'greener' steel. This development could position Hawsons Iron as a significant player in the global iron ore market, potentially impacting supply chains and pricing. The project's economic viability, as indicated by the PFS, suggests promising returns for investors and stakeholders, while also contributing to regional economic growth through job creation and infrastructure development.
What's Next?
Hawsons Iron plans to proceed with a comprehensive Feasibility Study, which will include confirmatory and optimization test work, byproduct extraction viability studies, and further drilling to expand and upgrade the mineral resource. The company will also focus on environmental and permitting plans, waste management strategies, and representative sample collection for pilot work. These steps are crucial for mitigating risks and ensuring the project's long-term success. The completion of the Feasibility Study will be a critical next step in securing financing and moving towards the construction and operational phases of the project.
