- Macarthur Minerals Limited (MMS) is advancing mine planning work at Lake Giles in Western Australia
- The detailed mine planning work focuses on the hematite deposits located at the Snark and Drabble Downs prospects
- In 2012 the company completed a Pre-Feasibility Study (PFS) of the Ularring Hematite Project that included beneficiation of low-grade iron mineralization
- Macarthur has engaged with road haulage contractors and has identified rail and export options
- The company has also made applications for miscellaneous licences to support the development of a mining camp and mining services infrastructure
- Macarthur is an iron ore development, gold and lithium exploration company
- Macarthur Minerals Limited (MMS) is up 2.38 per cent, trading at C$0.43 per share at 10:45 am ET
Macarthur Minerals Limited (MMS) is advancing mine planning work to support hematite mining operations at Lake Giles in Western Australia.
The company has commenced work to prepare a mine plan for a direct shipment ore (DSO) product under a mining campaign that will initially target the Snark and Drabble Downs deposits of the Lake Giles Ularring Hematite Project.
In 2012 Macarthur completed a Pre-Feasibility Study (PFS) of the Ularring Hematite Project that included beneficiation of low-grade iron mineralization.
Given the current strength of the global iron ore market, the company sees value in the development of a simple DSO operation with mobile crushing and screening equipment. The company’s mine planning work will be premised on this basis, targeting a low capital, rapid development scenario.
This low-cost approach does not diminish the potential for a beneficiated sinter fines product as envisaged in the original 2012 PFS.
The Snark and Drabble Downs deposits are located in close proximity to the Evanston-Menzies road that is currently being used for ore haulage by local gold mining operators. This road provides direct access to sealed highways to both Geraldton and Esperance ports as well as open access rail networks.
Macarthur has engaged with road haulage contractors and has identified rail and export options utilizing existing regional infrastructure.
The company has also made applications for miscellaneous licences to support the development of a mining camp and mining services infrastructure and is in discussions with neighbouring tenement holders for access to water bores.
Highlights
- Macarthur has commenced mine plan preparations
- Completion of mine planning work is being accelerated to allow Macarthur to target commencement of DSO shipments as soon as possible
- Mine planning work expected to be completed by the end of June, and a Mining Proposal to be lodged during Q3 this year
- The company has identified options for an export pathway to support planned DSO mining operations and is aiming to complete arrangements for its preferred product transport and export solution shortly
- The company will continue to explore options for additional DSO export capacity to take advantage of current strong iron ore prices and maximize value for shareholders.
NI 43-101 Technical Report filed October 1, 2012, titled “NI 43-101 Technical Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia.”
The detailed mine planning work focuses on the hematite deposits located at the Snark and Drabble Downs prospects where direct shipment ore (DSO) product has been defined (See figure 1 below).
The work to be undertaken will support regulatory approval of a Mining Proposal and tendering of contract mining services, and will include:
- project optimization
- mine design and layout
- mine scheduling of DSO
- mining cost estimation
- implementation planning
The mine planning and associated geotechnical assessment work are expected to be completed by the end of June, and Macarthur intends to lodge a mining proposal with the Department of Mines, Industry Regulation and Safety (DMIRS) during Q3 this year.
The company has identified options for an export pathway to support planned DSO mining operations and is aiming to complete arrangements for its preferred product transport and export solution shortly.
Following approval of the mine plan by DMIRS and subject to securing remaining project development approvals and closing project financing, the company intends to target commencement of DSO production at Ularring at the earliest available opportunity.
Andrew Bruton, Chief Executive Officer of Macarthur Minerals commented,
“Iron ore is experiencing one of the largest price surges in decades, and our shareholders have been eagerly anticipating the company’s advancement of early hematite mining operations at Ularring.
The current market has presented both opportunities and challenges over the last several months as the company navigates an increase in competitive demand for transport infrastructure and port access.
Macarthur’s Management team has risen to the challenge and has worked to advance a solution that aims to take advantage of the current strength in iron ore prices by advancing early mining operations.
Early mining operations will also support the company’s aim of commencing high-grade magnetite mining operations at its Moonshine and Moonshine North deposits following the completion of the current Feasibility Study process.
We are pleased to finally provide the market with the details of the next step towards this much anticipated corporate milestone being completed, and I look forward to keeping investors informed of the exciting developments along the pathway towards achieving our first shipment of iron ore. Further announcements on progress will follow in the coming weeks.”
Macarthur is an iron ore development, gold 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 has prominent (~721 square kilometre tenement area) gold, lithium and copper exploration interests in the Pilbara region of Western Australia.
Macarthur Minerals Limited (MMS) is up 2.38 per cent, trading at C$0.43 per share at 10:45 am ET.
