VANCOUVER, British Columbia, March 21, 2022 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF) (the Company or Macarthur ) is pleased to advise that it has completed a Feasibility Study for the Company’s high grade magnetite Lake Giles Iron Project. The results confirm that the project is economically viable under long-term iron ore price forecasts.
The Feasibility Study confirms an economically viable project producing 3 million tonnes per annum (dry basis) of high-grade magnetite concentrate over a 25-year mine life. The project will leverage off access to existing regional rail and port infrastructure and deliver a premium concentrate (66% Fe) product with low impurities. The Feasibility Study underpins a maiden Mineral Reserve of 237 million tonnes as reported to the market on 15 March 2022. ( See announcement here ). The Feasibility Study NI43-101 Technical Report will be released to the market within 45 days of the maiden Mineral Reserves announcement.
The Company will now proceed with post study optimization work, project development approvals and advancing project finance.
HIGHLIGHTS
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The Feasibility Study developed the following optimised ‘go-forward’ project scope and design. These components are presented in greater detail in the Annexure of this release.
| Scope | Description |
| Geology | Banded Iron Formation (BIF) magnetite mineralisation comprising Mineral Resources classified as Measured - 53.9 Mt, Indicated - 218.7 Mt, and Inferred - 449.1 Mt, reported above a 15% DTR cut-off grade. |
| Mining | Open pit mining of Measured and Indicated Mineral Resources of the Moonshine and Moonshine North magnetite deposits. Mining rate approximately 9.68 Mtpa ore at an average LOM strip ratio of 2.6:1. Nine-month pre-strip stage with production over approximately 25 years. |
| Metallurgy and Process Plant | Definition of a flow sheet comprising conventional crushing and grinding (HPGR, ball mill and Vertimill), magnetic separation, followed by reverse flotation to reduce silica in the final concentrate. Concentrate production of 3 Mtpa (dry basis) with a size range of P80 38 micron. |
| Road Haulage | Road haulage by contract operator utilising side tipping trucks from site to a rail siding 93km south of the Project, along a private sealed haul road. |
| Rail Haulage | Rail siding to be constructed south of the Project adjacent to the open access Eastern Goldfields Railway. Rail haulage to be undertaken by contractor responsible for provision of rolling stock. |
| Port & Shipping | Concentrate to be shipped from the Esperance Port in southern Western Australia using cape class vessels. Base case assumes Port operations will be managed by the Southern Ports Authority via the existing iron ore rail unloading circuit and ship loader. A new concentrate storage shed is to be constructed to hold approximately 260kt of product. Product is sold on a FOB basis with the offtake partner responsible for shipping. |
| Power | Stationary power demand of approximately 40MW from a standalone microgrid comprising a combination of LNG gas reciprocating engines, solar array and battery energy storage system (BESS) with renewable penetration of 33%. |
| Water | Project water to be sourced from local paleochannel aquifer. Processing to be conducted with saline bore water with final concentrate wash in desalinated water to remove chloride and alkali metals. |
| Tailings | Mineral processing will include a coarse dry stream to be co-located with mine waste and wet tailings to be pumped to a tailings storage facility. Water is to be recovered from tailings and pumped back for processing use. |
| Support Facilities | Supporting site infrastructure includes a permanent accommodation village and airstrip for FIFO workforce. |
| Mine Closure and Rehabilitation | Mine closure has been costed for incremental closure of mining areas with final closure and remediation of non-project areas at the end of the mine |
The Feasibility Study confirms the commercial viability of the Project to produce 3 Mtpa (dry basis) of high-grade magnetite concentrate over a long mine life of 25 years from Proven and Probable Mineral Reserves. The key production and financial outcomes are presented in the following table.
| Production | ||
| Ore mined | 236.6 Mt | |
| Waste mined | 624.9 Mt | |
| Total mined | 861.5 Mt | |
| Strip ratio | 2.64 | |
| Concentrate produced | 74 Mt | |
| Concentrate iron grade | 66.1 | |
| Plant recovery | 31% | |
| Financials | AUDm | USDm |
| Sales revenue | 12,614 | 8,956 |
| Operating Expenses | 8,116 | 5,672 |
| Initial Capital Expenditure | ||
| Construction capex | 801.1 | 568.8 |
| Mining overburden pre-strip | 61.6 | 43.8 |
| Total initial capital | 862.7 | 612.5 |
| Future Capital Expenditure | ||
| Sustaining capital | 203 | 144.1 |
| Deferred capital - Tailings | 39.8 | 28.3 |
| Capitalised non-operational waste mining | 355.7 | 252.5 |
| Total future capital | 598.0 | 424.6 |
| Closure Expenditure | ||
| Closure and rehabilitation | 58.2 | 41.3 |
| Total Operating Cash Flows | 3,625 | 2574 |
| Taxes & Royalties | ||
| Tax paid | 873 | 620 |
| Royalties | 631 | 435 |
| Valuation | AUDm | USDm |
| NPV (6%) Pre-tax | 816 | 579 |
| NPV (6%) Post-tax | 443 | 314 |
| IRR Pre-tax | 13.0% | - |
| IRR Post-tax | 10.1% | - |
A detailed summary of the Lake Giles Iron Project Feasibility Study is set out in the Annexure to this release.
Andrew Bruton, CEO of Macarthur Minerals commented:
“Macarthur is pleased to be able to provide the market with a summary of the key outputs from the Feasibility Study for the Lake Giles Iron Project. The Feasibility Study has been undertaken and successfully concluded amidst the challenges of Covid-19 impacts, and these results confirm that the Lake Giles Iron Project is economically viable under long-term iron ore price forecasts.
The Company will now proceed with post study optimization work, project development approvals and advancing project finance.”
On behalf of the Board of Directors, Mr Cameron McCall, Chairman
For more information please contact:
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Joe Phillips
Managing Director +61 7 3221 1796 communications@macarthurminerals.com |
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Investor Relations – Australia
Advis ir Sarah Lenard, Managing Partner sarah.lenard@advisir.com.au |
Investor Relations - Canada
Investor Cubed Neil Simon, CEO +1 647 258 3310 info@investor3.ca |
Competent / Qualified Person Statement
Mineral Resources:
The Mineral Resources for the Lake Giles Iron Project disclosed in this press release have been estimated by Mr. David Williams, BSc (Hons), a member of the Australian Institute of Geoscientists. Mr Williams, an employee of CSA Global Pty Ltd and Independent Qualified Person, has reviewed and approved the above technical information relating to the Mineral Resource estimates contained in this release, in the form and context in which it appears.
Mineral Reserves:
The information in this report relating to Mineral Reserves is based on information compiled by Stephen Craig, a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Craig is a full-time employee of Orelogy Consulting Pty Ltd. Mr. Craig has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as an independent Qualified Person as defined by NI43-101. Mr Craig consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Company profile
Macarthur is an iron ore development, and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project mineral resources include the Ularring hematite resource (approved for development) comprising Indicated resources of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26 million tonnes at 45.4% Fe; and the Lake Giles magnetite resource of 53.9 million tonnes (Measured), 218.7 million tonnes (Indicated) and 997 million tonnes (Inferred). Macarthur also holds 24 square kilometre tenement area iron exploration interests in the Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.
Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but not limited to statements regarding expected completion of the Feasibility Study; conversion of Mineral Resources to Mineral Reserves or the eventual mining of the Project, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; failure to complete the FS; inability to demonstrate economic viability of Mineral Resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Cautionary Statement
The Feasibility Study referred to in this press release is based on technical and economic assessments to support the estimation of Mineral Reserves. There is no assurance that the intended development referred to will proceed as described, and will rely on access to future funding to implement. Whilst the Company believes that it has reasonable grounds based upon the results of the Feasibility Study to secure the required funding, at this stage there is no guarantee that funding will be available, and investors are to be aware of any potential dilution of existing issued capital. It is possible that Macarthur could pursue other ‘value realisation’ strategies such as a partial sale or joint venture of the project. If it does, then this could reduce dilutionary impacts for existing shareholders and improve the Company’s overall prospects for project funding. The production targets and forward-looking statements referred to are based on information available to the Company at the time of release, and should not be solely relied upon by investors when making investment decisions. The Company cautions that mining and exploration are high risk, and subject to change based on new information or interpretation, commodity prices or foreign exchange rates. Actual results may differ materially from the results or production targets contained in this release. Further evaluation is required prior to a decision to conduct mining being made. The estimated Mineral Resources quoted in this release have been prepared by Competent Persons as required under the JORC Code (2012). Material assumptions and other important information are contained in this release.
This news release is not for distribution to United States services or for dissemination in the United States
ANNEXURE : Lake Giles Iron Project Feasibility Study Summary
1.
Project Overview
The Lake Giles Iron Project (“Project”) is located approximately 175 km northwest of the town of Kalgoorlie in the state of Western Australia. The Project is owned by Macarthur Iron Ore Pty Ltd (MIO), a 100% owned subsidiary of Macarthur Minerals Limited (“Macarthur” or “the Company”).
The Project consists of a series of banded iron formation (BIF) hematite and magnetite prospects with mineral resources of the magnetite mineralisation defined for the Snark, Clark Hill North, Clark Hill South, Sandalwood and Moonshine deposits, previously reported in 2020 (CSA Global, 2020).
This scope of the Feasibility Study concerns the development of the Moonshine North and Moonshine magnetite deposits. Feasibility study level engineering was completed across all areas of the Project’s required infrastructure in addition to investigation of existing regional infrastructure to be utilised. Associated capital and operating costs were generated to develop a financial model and define a maiden Mineral Reserve estimate.
2.
Company Background
Macarthur is an Australian public company listed on the Toronto Stock Exchange (TSX-V: MMS) and the Australian Securities Exchange (ASX: MIO) and commenced exploration in 2006 for magnetite iron resources and subsequently hematite iron resources on its Lake Giles tenements in Western Australia.
In 2020, the Company reported an updated Mineral Resource estimate (CSA Global, 2020) that underpins this Feasibility Study focussing on development of the Moonshine and Moonshine North magnetite deposits.
3. Project Location
The Lake Giles Iron Project is located approximately 450 km east-northeast from the coastal city of Perth and 175 km northwest from the historic gold mining town of Kalgoorlie-Boulder, in the state of Western Australia (Figure 1).
Unless otherwise stated, all coordinates referenced in this document are in Geocentric Datum of Australia (GDA 94, Zone 50). The Project tenements are centred at approximately 788,000 mE and 6,687,000 mN.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/78956666-c4d9-4fdf-8d9e-bc0161c35057
4.
Geology
Regional Geology
Macarthur’s tenements cover a portion of the Yerilgee Greenstone Belt which is over 80 km in length and up to 10 km wide and lies within the Southern Cross Province of the Yilgarn Craton. The Yilgarn Craton consists of multiple lenticular greenstone belts surrounded by variably foliated gneissic granitoids.
The greenstone belts consist of metamorphosed ultramafic, mafic and sediments, including BIF which are Archean in age and are commonly intruded by mafic, intermediate and granitic rocks.
Local Geology
The parts of the north-northwest trending Yerilgee greenstone belt covered by the Project tenements comprise a layered succession of Archean rocks. At the interpreted base of the succession is a sequence of high-magnesium basalt flows more than 1 km thick overlain by komatiitic ultramafic volcanic rocks with narrow interflow BIFs and in some cases, other sedimentary rocks. High-magnesium basalt lavas with occasional interflow BIFs overlain, possibly unconformably, by sedimentary rocks (cherty, silicified, pyritic and graphitic) are interpreted to form the top of this sequence. In places, gabbroic sills interpreted to be co-magmatic with the upper high-magnesium basalts, have been intruded into the lower mafic and ultramafic lavas. The elongated lens shaped Yerilgee belt is bounded by major north-northwest trending fault/shear zones. The iron ore mineralisation consists of secondary pisolite mineralization, primary magnetite mineralization associated with un-oxidized BIF and ultramafic rocks, and goethite-hematite mineralization associated with oxidized BIF. (Figure 2)
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/95dfdf4f-d13e-458a-b0b2-63aaebe4a31f
5.
Mineral Resources
The Mineral Resource estimate was completed by CSA Global Pty Ltd (CSA Global) and previously reported to the market on 11 August 2020. Mineral Resources for the Moonshine and Moonshine North deposits are presented in Table 1.
Table 1. Mineral Resources – Lake Giles Iron Project, Moonshine and Moonshine North, DTR >15%
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Category
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Tonnes
(Mt) |
Head Grades (%) | Concentrate Grades (%) | |||||||||
| Fe | P | SiO 2 | AI 2 O 3 | LOI | DTR | Fe | P | SiO 2 | AI 2 O 3 | LOI | ||
| Measured | 53.9 | 30.8 | 0.05 | 45.4 | 1.6 | 2.7 | 32.2 | 66.0 | 0.031 | 6.2 | 0.2 | -0.7 |
| Indicated | 218.7 | 27.5 | 0.046 | 51.1 | 1.4 | 1.6 | 31.0 | 66.1 | 0.017 | 6.7 | 0.1 | -0.1 |
| Subtotal | 272.5 | 28.1 | 0.047 | 50.0 | 1.4 | 1.8 | 31.2 | 66.1 | 0.02 | 6.6 | 0.2 | -0.2 |
| Inferred | 449.1 | 27.1 | 0.047 | 52.6 | 1.0 | 1.4 | 29.2 | 65.0 | 0.026 | 8.4 | 0.1 | 0 |
