Macarthur Minerals Limited
(ASX: MIO)
(TSX-V: MMS) (the “Company” or “Macarthur”) is
pleased to provide an update to Shareholders outlining an active
First Quarter 2020 in the ongoing development of the Company’s
flagship, Lake Giles Iron Project. The Company is pleased to also
provide an update on the very positive early exploration results
and next stage exploration program across the iron ore, gold,
nickel and cobalt projects in Western Australia.
FIRST QUARTER HIGHLIGHTS
- Macarthur responded swiftly to the onset of the global Covid-19
pandemic. The Company has continued its highly productive
“business as usual” focus with limited disruption to activities
over the last quarter.
- CSA Global Pty Ltd has been engaged to update the resource
model with results from the infill drilling. Several drill holes
intersected a zone of high-grade magnetite mineralisation
previously identified at the Moonshine North deposit.
- The Lake Giles Iron Project Feasibility Study (Feasibility
Study), is well underway following the completion of the infill
drilling program in December 2019.
- The Company maintains confidence in its objective of working
with service providers to achieve conditional capacity allocation
on the rail network and through Esperance Port during 2020 to
support completion of the Feasibility Study. This key achievement
will be a milestone for the Company and will also vindicate the
integrity of the open access rail and port infrastructure regime in
the region.
- Despite robust iron ore prices, the Kalgoorlie to Esperance
rail line and Esperance Port iron ore export infrastructure has
only seen a total run-rate of iron ore shipments during the last
four quarters to 31 March 2020 of just over six million tonnes. The
combined run-rate is far less than the notional 15-20 Mtpa system
capacity and is considerably less than the peak run-rate achieved
by Cliffs Natural Resources which operated the Koolyanobbing mine
prior to departing Australia in mid-2018.
- A drilling program was completed at the Hillside Gold and
Copper Project in the Pilbara region of Western Australia to test
potential supergene and hypogene mineralisation along the majority
of a 14-kilometre Gossan line where previous rock chip sampling
identified anomalous copper (Figure 1). This program also tested
outcropping quartz vein mineralisation identified through
prospecting activities. Macarthur’s Joint Venture Partner, Fe
Limited (FEL) are due to complete a Fixed Loop Electromagnetic
(FLEM) survey across several targets at the Hillside project in
July 2020.
- New York based EAS Corporate Advisors have been appointed to
assist in the financing strategy for the Lake Giles Iron Project.
EAS Advisors have participated in over US$6 billion of transactions
to date.
- Northland Securities Inc, which acts as OTCQB Sponsor and
Advisor to the Company has submitted a Form 211 with the Financial
Industry Regulatory Authority (“FINRA”) to satisfy requirements of
FINRA Rule 6432, as part of the requirement to initiate quotation
as defined in rule 15c2-119(e)(i) under the Securities Exchange Act
of 1934 (“1934 Act”).
- Macarthur was admitted to the Official List of Australian
Securities Exchange (ASX) on 4 December 2019 and commenced
quotation of its securities on ASX: MIO on 6 December 2019. Over
the period from 6 May 2020 the Company’s securities have been
trading on ASX within a range of A$0.13 to A$0.21. Over the same
period, the Company’s securities have been trading on TSXV within a
range of C$0.14 to C$0.23. Post listing on the ASX, the securities
on both exchanges now appear to be synchronising well.
Mr Cameron McCall, Executive Chairman of
Macarthur Minerals commented:
“The Iron ore price has remained strong during
the Covid-19 pandemic trading between US$81.65 and US$103.59 for
62% Fe ore, and this price stability is creating momentum in the
global iron ore industry. Due to the strength and stability of the
global iron ore market, Macarthur is examining project
opportunities that have the potential to generate early revenue
flows including a possible acceleration of development of the
Company’s Ularring Hematite Project at Lake Giles.
The Company’s core focus will remain on
delivering a high-quality, low-impurity magnetite fines product
(+65% Fe) at its Lake Giles Iron Project which will target Asian
steel mills that are focused on producing quality steel products,
enhanced furnace efficiencies, reduced consumption of coking coal
and improved environment emissions standards.
During the last quarter our Joint Venture
partner Fe Limited completed the sale of its Evanston Iron Ore
Royalty for $7m and announced priority exploration of the
Company’s Hillside tenements in the Pilbara region.
It’s pleasing the Company’s share price has been
resilient through a very volatile period in the market.”
ROUTE TO MARKET
Macarthur has continued to progress discussions
with key rail and port service providers, as well as the Western
Australian Government, to develop the capacity and infrastructure
solutions which are necessary to secure a fully contracted route to
market for the Lake Giles Iron Project.
Achieving this will be a milestone for the
Company and it will also vindicate the integrity of the open access
rail and port infrastructure regime in the region which, despite
robust iron ore prices, has only seen a total combined run-rate of
iron ore shipments along the Kalgoorlie to Esperance rail line and
through Esperance Port during the last four quarters to 31 March
2020 of just over 6 million tonnes. The current run rate remains
significantly below the notional annualised capacity of the system
and well below the historic annualised run rates achieved by Cliffs
Natural Resources prior to its departure from the Australian market
in mid-2018.
RCD / CONVEYOR SOLUTION AT
ESPERANCE
Macarthur is working collaboratively with rail
and port service providers to develop a unique infrastructure
solution which the Company considers will provide the potential for
future growth in trade through the Esperance Port without
disruption to existing users. The Company engaged Engenium Pty Ltd
to undertake a conceptual engineering design study in March for an
“Off-Port” solution which involves construction of a standard
rotary car dumper (RCD) outside the Esperance Port and connected by
a covered tube conveyor feeding into an on-port 300kt iron ore
storage shed. That design study has been completed and the Company
is about to commission further conceptual engineering design study
work to be completed during June/July for an “On-Port” solution
which would involve the construction of a hybrid RCD on an area of
land within the boundary of the Esperance Port at a suitable
location, linked by a conveyor that will connect to the on-port
300kt iron ore storage shed.
Following completion of the design work, the
Company will work with rail and port service providers to select a
preferred development option for its unloading infrastructure,
which has the potential to facilitate an increase in throughput
capacity at Esperance Port for other emerging miners in the region,
subject to available rail and ship-loader capacity.
Macarthur supports open access principles for
regional infrastructure and is proposing to contract on a firm
take-or-pay basis for a minimum 10-year period. The Company
considers that a take-or-pay contract structure is a model that can
offer a genuinely sustainable revenue stream for rail and port
service providers in a region which could be exposed to the
potential for movements in the more volatile <62% Fe product
market, especially if not underpinned by firm take or pay
commitments. Macarthur’s contracting and infrastructure solution is
therefore intended to demonstrate its commitment, through the
development of the Lake Giles Iron Project, to building sustainable
growth and long-term job security in the region.
Management is optimistic that, with the
continued positive co-operation and engagement of rail and port
service providers, and the State of Western Australia, agreements
providing a conditional route to market pathway that will
facilitate completion of its Feasibility Study for the Lake Giles
Iron Project, can be achieved during 2020. The Company remains
committed to working towards securing unconditional above and below
rail paths and port capacity allocations as soon as possible after
that.
COVID-19 IMPACTS
Macarthur responded swiftly to the onset of the
global Covid-19 pandemic. The Company has continued its highly
productive “business as usual” focus with limited disruption to
activities over the last quarter. The impacts of travel
restrictions on operations have so far been minimal, but the
Company will continue to monitor whether sustained access
restrictions may impact timing for completion of some components of
the Feasibility Study for the Lake Giles Iron Project, including
the conduct of seasonal environmental surveys.
EARLY REVENUE IRON ORE
OPPORTUNITIES
Macarthur continues to monitor and assess the
potential for opportunities to transition to early revenue
generating iron ore operations, including a possible acceleration
of development of the Company’s Ularring Hematite Project at Lake
Giles. The Company will ensure that the development of any
potential opportunity compliments (and does not detract from) the
pathway and timeframes to production of its flagship high grade
Moonshine Magnetite deposits at Lake Giles. The Lake Giles Iron
Project remains the Company’s core focus.
SUMMARY OF PROGRESS ON IRON
ASSETS
Moonshine Magnetite Infill Drilling
Program
The majority of the Moonshine and Moonshine
North deposits are defined by drill hole spacing of 200m X 200m and
classified as an Inferred Mineral Resource of approximately 710 mt
at 30.2% Fe1.
The infill drilling program was designed at
closer drill hole spacing to upgrade the resource classification
for some of the Moonshine and Moonshine North deposits. The planned
program included 21 RC drill holes and 9 diamond drill holes. The
program concluded with a total of 3,674 meters of RC drilling and
2,673 meters of diamond drilling completed.
The drilling program was designed with the goal
of upgrading the resource classification to include Indicated and
Measured Mineral Resources. The updated mineral resource, when
completed, will underpin the Feasibility Study to be completed for
the Lake Giles Iron Project.
Macarthur has now engaged CSA Global Pty Ltd to
complete an updated resource model and classification.
_________1 NI43-101 Technical Report filed June
17, 2019, titled “Macarthur Minerals Limited, Preliminary Economic
Assessment Lake Giles Iron Project, Western Australia”, NI43-101
Technical Report – Preliminary Assessment
Moonshine North Magnetite
Results
Reverse Circulation and Diamond drilling at the
Moonshine North deposit successfully intersected the previously
identified high grade magnetite mineralisation. Assay results for
intervals of high-grade magnetite are provided in the table below.
(NOTE these are drill intersections and not true widths).
Hole |
mFrom |
mTo |
Fe% |
SiO2% |
LGRC_2160 |
131 |
168 |
50.28 |
12.64 |
Including |
139 |
155 |
55.44 |
8.03 |
and |
141 |
145 |
61.00 |
6.28 |
LGRC_2166 |
115 |
149 |
50.07 |
15.67 |
Including |
127 |
150 |
55.45 |
9.49 |
and |
129 |
148 |
60.03 |
7.02 |
Ore grade XRF assays were previously released to
the market on 10 December 2019 and 17 January 2020. Samples were
subsequently submitted for DTR anaylsis to determine the magnetite
fraction and concentrate grade.
DTR analysis has been completed for 25 holes
intersecting magnetite mineralisation at the Moonshine and
Moonshine North deposits. DTR assays were completed for sample
composites ranging from 3m to 5m intervals based on head grade XRF
assays and geological logging.
Average concentrate grades across holes ranged
from 63.7% Fe to 68.9% Fe with mass recoveries ranging from 15.5%
to 51.6% (Table 1). Weighted average ore grades across mineralised
intervals approximated 30.4% Fe with weighted average DTR
concentrate of 66.6% Fe with a mass recovery of 31.2%. These data
are in accordance with the mineral resource estimate at 30.2% Fe
and 31.4% mass recovery1.
Several holes intersected intervals with high
DTR mass recovery and iron concentrate grades as shown in the table
below.
Hole |
mFrom |
mTo |
DTR Mass Recovery % |
Fe Concentrate % |
LGRC_2165 |
52 |
110 |
39.9 |
68.88 |
LGRC_2160 |
96 |
179 |
41.3 |
68.78 |
LGRC_2147 |
139 |
199 |
42.4 |
67.17 |
Including |
139 |
167 |
45.2 |
66.63 |
LGRC_2166 |
114 |
149 |
51.6 |
68.61 |
Exploration Licence E30/522
On 23 April 2020 Macarthur increased its
landholding in the Lake Giles region of Western Australia with an
application for Exploration Licence E30/522. This tenement is
located 9km north of the Snark deposit of the Ularring Hematite
Project. The Company previously held this ground and completed
early stage drilling targeting iron mineralisation. The area is
prospective for nickel exploration and Macarthur holds drilling
samples that could be assayed for gold and base metals. This ground
complements the nearby Snark and Moonshine nickel targets that the
Company is actively working towards seeking a Joint Venture or
Farm-in partner.
MRL Haul Road Application
Mineral Resources Ltd (MRL) has applied for
tenure to construct a haul road between their existing Carina
operation, 45km south of Moonshine Magnetite Deposit through to
their Mt Richardson iron ore deposit north of Macarthur’s projects.
The haul road is located within 2 kilometers of the Company’s
Ularring Hematite and Moonshine Magnetite deposits. Construction of
the new haul road will link through to an existing haul road for
MRL’s Carina project that runs through to the Perth to Kalgoorlie
rail line.
MRL is due to commence environmental surveys of
the haul road within the next week to support its environmental
approvals.
SUMMARY OF NON-IRON ASSETS
In 2019 Macarthur’s primary focus was on its
Western Australian Iron Ore assets. To support this strategy, the
Company ventured out the gold and lithium tenements in the Pilbara
region to ASX listed Australian explorer, Fe Limited (“FEL”). FEL
has the ability to earn up to 75% of these Projects through
exploration and staged cash payments to Macarthur. During the
quarter FEL conducted exploration on these areas and completed a
drilling program of copper and gold targets at the Hillside
Project.
Hillside tenements
As previously announced by the Company on 29
April 2020 results from drilling by Macarthur’s JV partner FEL were
very encouraging with three holes positively identified to have
intercepted down dip extensions of a surface gossan. Significant
results included:
- HRC 001: 1m @ 0.19% Cu, 230ppm Co, 0.14% Zn, 0.07ppm Au from
28m
- HRC 022: 1m @ 0.74% Cu, 349ppm Co, 0.41% Zn, 0.14ppm Au from
83m
- HRC 036: 1m @ 0.18% Cu, 0.12% Zn from 25m, 1m @ 0.27% Cu from
40m
These three holes showed anomalous intercepts
spanning the full length of the 14 km strike. In a cost saving
measure, roughly half of the drilled samples were assayed in the
lab where there was a logged record of visible quartz or sulphides
in the samples. The remaining samples are now being analysed using
a portable XRF in case any anomalous samples were missed. If any
are found, these will be sent to the lab for formal assay.
Once the results are received (lab and pXRF),
the data will be interpreted using geochemistry to try to
differentiate between different flows of basalt as a method of
targeting possible sedimentary horizons deposited during volcanic
hiatus. It is not yet clear whether outcropping and downhole
mineralisation is the result of a volcano-stratigraphic massive
sulphide deposit or a hydrothermal shear hosted depositional
model.
FEL is currently finalising plans to conduct a
Fixed Loop Electromagnetic Survey (FLEM) ground survey at the
Hillside project. The survey will cover a section of the previously
identified gossan line as well as a series of individual FELM
surveys over previously identified high priority SkyTEM
electromagnetic targets across the wider project area.
Results are expected to better indicate any
massive sulphide mineralisation which may exist to assist targeting
the next drilling campaign which is expected to occur later this
year.
Figure 1 – Sample Location
Map is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/36f4b4e5-fa24-42b6-9a89-23ba7566765d
Fe Limited (ASX: FEL) is a listed mineral
exploration Company that holds or has rights or interests in
various projects and tenements prospective for battery metals,
copper, iron ore, gold and base metals located in Australia. The
Company is focused on the exploration of battery metal projects. In
March 2019, FEL entered into an agreement to acquire the
Pippingarra Lithium Project and the Marble Bar Lithium Project
(Project) from Mercury Resources Group Pty Ltd. These areas
complement the tenement portfolio of Macarthur Minerals,
establishing a 1800 square kilometre exploration footprint in the
important Lithium and Gold region of Western Australia.
PILBARA HARD ROCK LITHIUM
Macarthur’s Pilbara lithium portfolio covers an
area of ~723 square kilometers, have regulatory exploration licence
approval and cover similar geological settings to that of “world
class” Pilbara lithium deposits and producing spodumene mines.
These areas are included in the earn-in Joint Venture program that
is targeting battery metal deposits. These areas have been added to
during 2019 with the lithium potential tenements held by Fe
Limited.
REYNOLDS SPRINGS PROJECT - NEVADA,
USA
Macarthur holds 210 unpatented mining claims at
its Reynolds Springs Lithium Brine Project in the Railroad Valley,
Nevada, USA. Analysis of geochemical soil sampling found up to
405ppm Li.
Macarthur conducted further review of several
historic well logs drilled on the claims and identified numerous
conductive, faulted zones that indicate the presence of a brine
aquifer. The Company is seeking interested parties in further
exploring this asset portfolio.
OTCQB - NORTHLAND SECURITIES
INC
Northland Securities Inc, which acts as OTCQB
Sponsor and Advisor to the Company has submitted a Form 211 with
the Financial Industry Regulatory Authority (“FINRA”) to satisfy
requirements of FINRA Rule 6432, as part of the requirement to
initiate quotation as defined in rule 15c2-119(e)(i) under the
Securities Exchange Act of 1934 (“1934 Act”). This form is
currently subject to review and approval by FINRA. Once FINRA is
satisfied that the disclosures satisfy the requirement of Rule
15c2-11 and the application to reinstate trading on the OTCQB is
reviewed and approved by OTC Markets Group, the Company will trade
on the OTCQB again.
FINANCIAL ADVISORS
Macarthur Minerals has appointed New York based
EAS Advisors as its corporate advisor to assist it in the financing
strategy for its Lake Giles Iron Project. Founded by Edward Sugar
in 2008, EAS is a boutique global advisory firm focused on backing
early stage mining and industrial groups to access US and
international financial markets and institutional capital. Having
participated in over US$6 billion of transactions to date, EAS has
been instrumental in a number of financing arrangements and has an
exceptional record for backing early finance deals for a number of
ASX listed companies.
NEXT STEPS
Macarthur will actively advance, with our key
partners, its iron ore assets in Western Australia. Infill drilling
of the Moonshine Magnetite deposit has been completed with the
resource model currently being updated. This updated model along
with rail and port capacity will be integrated into the Feasibility
Study of the Lake Giles Iron Project. Further, the Company will
work closely with Fe Limited to advance exploration of its
high-quality lithium, gold and base metal tenements in the Pilbara
region.
On behalf of the Board of Directors, Mr
Cameron McCall, Executive Chairman
For more information please contact:
Joe PhillipsCEO & Director+61 7 3221
1796communications@macarthurminerals.com
Investor CubedNeil Simon,
CEO647-258-3310info@investor3.ca
Company profile
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 Moonshine magnetite resource of
710 million tonnes (Inferred). Macarthur has prominent (~721 square
kilometer tenement area) gold, lithium and copper exploration
interests in Pilbara region of Western Australia. In addition,
Macarthur has lithium brine Claims in the emerging Railroad Valley
region in Nevada, USA.
This news release is not for
distribution to united states services or for dissemination in the
United States
Caution Regarding 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, beliefs, plans,
statements about future events, trends or performance, assumptions
or developments that the Company believes, expects or anticipates
will or may occur in the future 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. With respect
to forward-looking statements contained in this press release,
assumptions have been made regarding, among other things, the
reliability of information prepared and/or published by third
parties that are referenced in this press release or was otherwise
relied upon by the Company in preparing this press release.
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. Readers are
cautioned not to attribute undue certainty and 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 (including, but not limited to, risks related to the
Company’s inability to identify one or more economic deposits on
its properties, variations in the nature, quality and quantity of
any mineral deposits that may be located, variations in the market
price of any mineral products the Company may produce or plans to
produce, the Company’s inability to obtain any necessary permits,
consents or authorisations required for its activities, to produce
minerals from its properties successfully or profitably, to
continue its projected growth, to raise the necessary capital or to
be fully able to implement its business strategies). 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.
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