Red Hawk Mining has announced the results of a Scoping Study on a 3Mtpa Direct Shipping Ore (DSO) project at its Blacksmith Iron Ore Project in the Pilbara region of Western Australia.
The Scoping Study is based on the recently released DSO Mineral Resource Estimate (MRE) from the Delta and Paragon deposits of 100.1Mt at 60.1 per cent iron (Fe), with 96 per cent of the resource classified as Indicated.
Red Hawk’s Managing Director, Steven Michael, said that over the past six months, Red Hawk has ‘right sized’ the development plan for Blacksmith, with a focus on speed to market and lowering upfront capital.
“We have leveraged off the considerable work already completed at Blacksmith, including extensive drilling, metallurgical testwork, state and federal approvals, and native title agreements,” Mr Micheal said.
“The DSO Mineral Resource Estimate for Delta and Paragon (100.1Mt at 60.1 per cent Fe), demonstrates there are ample resources which can produce a saleable product in the current iron ore market.
“Red Hawk has progressed geological re-interpretation of the Champion and Blackjack deposits, which aims to increase the overall Mineral Resource Estimate, for inclusion in the PFS which is now underway.
Mr Michael said that one of the key highlights of this Scoping Study is the low upfront capital of $150 million, including a 30-35 per cent contingency.
“When combined with life-of-mine C1 cash costs of just US$50/wmt, the project delivers outstanding returns, with an NPV eight per cent (pre-tax) of $356 million, IRR of 35 per cent and capital payback of 3.1 years from first production, using Platts’ long-term iron price of US$89/t.
“Red Hawk has added considerable iron ore development experience to its team over the past few months, to continue its rapid progress through the various study phases and into construction, production targeted for 2025.”
Red Hawk’s Chair, Cheryl Edwardes, said that she is pleased with the results of this Scoping Study and the positive steps being taken towards becoming an iron ore producer.
“I commend the team at Red Hawk and the technical and commercial consultants for their diligence throughout the Study process and delivering a robust development plan,” Ms Edwards said.
“Along with all Red Hawk shareholders, I look forward to seeing our first iron ore on a ship in 2025.”
Featured image: Red Hawk Mining workers. Image credit: Red Hawk Mining.
