Macarthur Minerals lodges applications for haul road and rail-loading tenure to support potential for early revenue DSO minin...
June 25 2020 - 8:00AM
Macarthur Minerals Limited (TSX-V: MMS)
(ASX: MIO) (the “Company” or “Macarthur”) announces that
on 25 June 2020, it lodged applications with the Department of
Mines, Industry, Regulation and Safety (“DMIRS”) to develop a 93km
haul road from its Lake Giles Iron Project to a proposed rail
siding adjacent to the Perth to Kalgoorlie rail line in the Yilgarn
region of Western Australia.
Subject to obtaining required approvals and
completion of construction, the proposed haul road and rail siding
will provide optionality for the transport of iron ore by rail to
either Esperance Port or the Port of Kwinana.
This key infrastructure is intended to support
the development of Macarthur’s flagship Moonshine magnetite
deposits at Lake Giles, targeting a +65% Fe beneficiated magnetite
concentrate, and opens up the opportunity to exploit Direct
Shipping Ore (“DSO”) from the Ularring hematite deposits.
In 2012, the Company completed a Pre-Feasibility
Study for the mining of iron ore from its Ularring hematite
deposits targeting a +60% Fe beneficiated fines sinter product.
Given the current robust iron ore market, the Company is currently
examining the opportunity to accelerate operations for the mining
of DSO (as Stage 1) from its Ularring hematite deposits with the
objective of generating early revenue flows. The development of new
road and rail siding infrastructure has the potential to facilitate
this, in addition to supporting the development of the Company’s
flagship Moonshine magnetite resource (Stage 2) following
completion of a successful Feasibility Study for the Lake Giles
Iron Project which is currently being progressed.
The details of the proposed haul road and rail
siding locations are set out below:
Haul Road
The proposed haul road is covered by
Miscellaneous Licence Application (L16/133) extending over a
distance of 93km from the Moonshine Magnetite deposit to the
existing Perth to Kalgoorlie rail line that has direct access to
the Port of Esperance and the Kwinana Bulk Terminal south of Perth,
Western Australia. The proposed route is shown in the map in Figure
1 below.
The Company will now work towards completing
environmental surveys of the road alignment to progress
environmental permitting.
Figure 1: Proposed Haul Road Route - Miscellaneous
Licence Application (L16/133) is available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/a252a5da-ce8f-4271-bb0e-dec4efef3765
Rail Siding
The proposed rail siding is covered by
Exploration Licence Application (E15/1775) and Miscellaneous
Licence Application (L15/409). The loadout offers the flexibility
for eastbound rail haulage to the Port of Esperance or westbound
haulage to the Kwinana Bulk Terminal south of Perth.
The Company will now progress with a Crown Lease
over the area to facilitate the construction of the rail loop from
the main rail line and will work with rail service providers to
optimise the design of the rail siding infrastructure.
Figure 2: Proposed Rail Siding covered by
Exploration Licence Application (E15/1775) and Miscellaneous
Licence Application (L15/409) is available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/3f7da77b-1781-42cb-8121-eac78b9c372d
Cameron McCall, President and Executive
Chairman of Macarthur Minerals commented:
“Defining route-to-market infrastructure has
been the core focus for the Company throughout 2020. Completion of
the Lake Giles Iron Project Feasibility Study will require
Macarthur to have engineering designs and tenure for a haul road
from the Lake Giles Iron Project to a rail siding with access to
the existing rail network. This step signals another positive step
forward in the development of the Company’s flagship magnetite
resource.
The proposed haul road and rail siding also
creates the opportunity to support Stage 1 hematite mining
operations at Lake Giles ahead of the commencement of Stage 2
commercial magnetite mining operations. The Board considers that
advancing early-revenue generating operations would support
re-rating of Macarthur as a producer and will complement the
announced pathway for the development of its flagship high-grade
Moonshine magnetite resource at Lake Giles.”
On behalf of the Board of Directors, Mr
Cameron McCall, Executive Chairman
For more information please contact:
Joe
Phillips
CEO &
Director
+61 7 3221
1796
communications@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 or developments
that the Company believes, expects or anticipates will or may occur
in the future, including but limited to statements regarding
expected completion of the Feasibility Study; granting of mineral
tenure to facilitate infrastructure proposed; or the eventual
mining of the Project, 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. 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. Factors that could cause actual
results to differ materially from those in forward-looking
statements include but are not limited to: unforeseen
technology changes that results in a reduction in iron or magnetite
demand or substitution by other metals or materials; the discovery
of new large low cost deposits of iron magnetite; the general level
of global economic activity; failure to complete the FS; failure of
the FS to reflect currently anticipated increases annual production
and decreases in expected costs at the Project; failure to receive
mineral tenure for infrastructure; and failure to obtain mining
approvals under the Mining Act. Readers are cautioned 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. 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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