A pre-feasibility study (PFS) has been completed at a high-grade magnetite project in the Central Yilgarn of Western Australia.
The 12Mtpa project is situated at the Mt Bevan Iron Ore joint venture (JV) project. The joint venture is between Legacy Iron Ore, Hawthorn Resources and Hancock Magnetite Holdings.
Following the completion of the PFS, the JV ownership is Hancock (51 per cent), Legacy (29.4 per cent) and Hawthorn (19.6 per cent).
According to metallurgical testing, the project can achieve a direct reduction iron (DRI) product grade of more than 70 per cent iron and less than 2.5 per cent silicon at 45µm grind size with the potential to obtain a significant premium.
The PFS incorporated the recently announced total mineral resource estimate (MRE) of 1,291Mt.
The PFS also involved:
- Resource drilling of a total of 41 drill holes
- Baseline environmental and heritage surveys
- Comprehensive metallurgical test work program
- Development of a 25-year mine plan
- Process plant and infrastructure design to support a Class 4 cost estimate
- 3rd Party engagement with Arc Infrastructure and Southern Ports for transport logistics
Following the results of the PFS, the JV partners have committed to commence a forward works plan to further define, optimise and de-risk the project, including:
- Acquiring tenure to support water exploration and service corridors
- Continuing heritage and environmental surveys for approvals
- Investigate other optimisation avenues, including:
- Further assessment of transport options
- Further investigation of power supply alternatives
Legacy Iron’s CEO, Rakesh Gupta, said this is a significant development advancing the Mt Bevan magnetite project.
“The release of the study shows the real economics of the project and further highlights the significant skills brought to the joint venture by Hancock. The project is truly world-class, with a grade of 70 per cent iron, making it attractive to end users. We look forward to the ongoing development of this project with our joint venture partners.”
Hawthorn’s Managing Director and CEO, Brian Thornton, complimented Hancock and its team for its professionalism in delivering a very complex PFS for a greenfields, next-generation iron ore project.
“Our commitment as joint venture partners in Mt Bevan has been to unlock the potential of one of Australia’s highest grade in-situ magnetite deposits for the benefit of our shareholders and the nation.
“At a beneficiated DRI product grade of 70 per cent iron, Mt Bevan magnetite will be a key ingredient for DRI in future steel making and result in a ‘cleaner greener steel’ assisting in our universal goal of net zero economic development.”
Hancock said, “The completion of the Mt Bevan Magnetite Project PFS is a significant milestone for the joint venture and reflects the hard work of Hancock, Legacy Iron and Hawthorn Resources.
“The technical outcomes from the work done are positive and further work is being undertaken to optimise the design and costs for supply of power, transport of iron ore product from mine site to a port for export of the product and identification of water sources required for processing and production of the concentrates.”
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