Macarthur pegs Lake Giles after-tax NPV at $315M (U.S.)
2022-03-21 09:11 ET - News Release
Mr. Andrew Bruton reports
POSITIVE FEASIBILITY STUDY RESULTS FOR LAKE GILES IRON PROJECT
Macarthur Minerals Ltd. 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:
- Feasibility Study completed for a 3 Mtpa (dry basis) magnetite mining and processing operation. (Feasibility Study report to be released within 45 days of the maiden Mineral Reserve announcement dated 15 March 2022).
- Feasibility Study supports a maiden Mineral Reserve of 237Mt for a 25-year mine life.
- Production of high-grade magnetite concentrate targeting 66.1% Fe with minimal impurities suitable for pellet feedstock.
- Initial capital investment of USD 569m (AUD 801m) with mine pre-production capital of USD 43.8m (AUD 66.1m)
- All-in C1 operating costs of USD 71.74 / dmt (AUD 101.05/ dmt).
- Positive project economics with Pre-tax NPV of USD 579m (AUD 816m) a 13% IRR and Post-tax NPV of USD 315m (AUD 443m).
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.
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."
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.