Macarthur Minerals Limited
(ASX: MIO) (TSX-V: MMS) (the
“Company” or “Macarthur”) is pleased to update shareholders on a
very active second quarter 2020. The Company has continued its
primary focus on the delivery of key infrastructure and resource
outcomes with the ongoing development of the Company’s flagship,
Lake Giles Iron Project (“Project”).
KEY HIGHLIGHTS
- 12 August - Announced Moonshine Magnetite Mineral
Resource upgrade
- 7 August - Announced the submission and completion of
assessment by FINRA of Form 211, the final regulatory hurdle needed
to complete the Company’s re-listing on OTCQB
- 4 August - Announced appointment of International Sales
& Marketing General Manager
- 28 July - Announced RCR Mining Technologies (subsidiary
of NRW Holdings ASX: NRH) appointment to examine rail unloading
infrastructure solution at Esperance Port
- 15 July - Announced proposal for development of a
Commercial Track Access Agreement received from Arc
Infrastructure
- 25 June - Announced lodgment of applications for land
access 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
- 25 June - Announced finalisation of land tenure
agreement for the development of its proposed Magnetite processing
plant at Lake Giles
The market has responded well to the significant
progress the Company has made over the past quarter and this has
been reflected in the increase in both the share price and trading
volumes over recent weeks. The Company’s securities traded on
the TSX-V in Canada over the past 3 months have ranged between
C$0.15 to $0.46 and on the ASX in Australia over the same period,
A$0.13 to $0.44, breaking through 50 and 200 moving day averages
recording a new 52 week high.
Recent trading volumes and share price growth is
reflecting the steps forward taken by Macarthur in advancing its
Lake Giles Iron Project.
Graph 1 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/881aa426-9b20-4c8a-b2c6-20098b21eeeb
SUMMARY OF PROGRESS ON IRON
ASSETS
MOONSHINE MAGNETITE MINERAL RESOURCE
UPGRADE
Macarthur Minerals recently announced the
updated Mineral Resource estimate for the magnetite deposits at its
Lake Giles Iron Project in Western Australia in a news release
dated 12 August 2020 (see full release here).
The updated Mineral Resource estimates
incorporated the recent infill drilling at the Moonshine magnetite
deposits that culminated in an increase in the size of the Mineral
Resources including resource category upgrades to now include
Measured and Indicated resources. Approximately 30% of the
Moonshine resource is now classified as Indicated with
approximately 7.5% classified in the Measured category. A
supporting NI43-101 Technical Report will be filed with Canadian
regulators on SEDAR at www.sedar.com within 45 days of the upgrade
announcement.
Highlights of Mineral Resource
estimates:
- Measured resources of 53.9 Mt at 30.8% Fe head grade
and 66.0% Fe DTR concentrate grade
- Indicated resources of 218.7 Mt at 27.5% Fe head grade
and 66.1% Fe DTR concentrate grade
- Inferred resources of 997.0 Mt at 28.4% Fe head grade
and 64.6% Fe DTR concentrate grade
ROUTE TO MARKET
Appointment of International Sales &
Marketing General Manager
The Company recently appointed Jonghyun
(Richard) Moon as the Company's new General Manager, International
Sales & Marketing. Richard brings over 20 years of
experience to the role and previously held roles at Hyundai Steel
Company of Australia, Glencore International, and POSCO in
international iron ore and commodities sales, as well as marketing
and mining investment.
Richard’s primary focus will be on identifying
and developing opportunities for strategic partners to invest in
the Company’s Lake Giles Iron Project.
Appointment of RCR Mining
Technologies
Macarthur has appointed RCR Mining Technologies
(“RCR MT” or “RCR”) to provide an engineering solution for rail
wagon and unloading infrastructure for the Lake Giles Iron
Project. RCR will examine the potential of rail transport and
unloading infrastructure that has been successfully used in
Scandinavian magnetite operations for years. The engineering
concept will employ a ‘Helix Dumper’ unloading system and Helix
Dumper wagons that are owned and developed by Kiruna Wagon in
Sweden. RCR MT hold an exclusive licence to develop the Helix
system in Australia and, in combination with Kiruna Wagon, it has
the ability to produce the specialised Helix Dumper wagons in
Western Australia.
Development of a Commercial Track Access
Agreement with Arc Infrastructure
During the quarter Macarthur received a proposal
from Arc Infrastructure for indicative track access pricing
(“Proposal”). The Proposal also provides a clear pathway for
the development of a Commercial Track Agreement which will provide
sufficient below rail network paths between the planned rail siding
and the Port of Esperance. The Company considers that the
receipt of the Proposal from Arc Infrastructure is the most
substantial step forward for the Project in a decade towards
securing fully contracted rail paths on the Kalgoorlie to Esperance
rail line. The Proposal also delivers the level of certainty
on the below rail component that Macarthur requires to underpin its
Feasibility Study (“FS”).
Haul road and rail-siding applications
lodged
Macarthur has lodged applications with the WA
Department of Mines, Industry, Regulation and Safety (“DMIRS”) to
develop a 93-kilometre haul road to a proposed rail siding adjacent
to the Perth to Kalgoorlie rail line. The proposed haul road
and rail siding will enable the transport of magnetite iron ore
from the Lake Giles Iron Project to the proposed new unloading
infrastructure at Esperance Port. The proposed rail siding will
also have the potential to support early revenue direct shipping
ore (“DSO”) mining operations via Kwinana Port, subject to port
capacity.
IRON ORE MARKET
Iron ore prices have continued to remain robust
during the quarter, despite the global COVID-19 pandemic.
Graph 2 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/efd2dda8-7888-449d-ab0a-ca784a199f32
ANCILLARY IRON PROJECTS
Macarthur also holds three additional iron ore
projects in the Yilgarn region of Western Australia through its
wholly owned subsidiary Esperance Iron Ore Export Company Pty
Ltd. These projects are proximate to Macarthur’s Lake Giles
Iron Projects and are adjacent to active and past iron ore mining
operations linked to established rail infrastructure to the Port of
Experience.
Treppo Iron Project
The Treppo Iron Project comprises one
application for an Exploration Licence that is located
approximately 30 kilometres West of the Lake Giles Iron Project.
Upon grant of this tenement the Company plans to commence
exploration including drilling of hematite targets that have been
mapped to date. This project is ideally situated in close proximity
to the Company’s Lake Giles Iron Project and Mineral Resources’
Koolyanobbing project and infrastructure. This provides optionality
in utilising regional infrastructure and allows for fast-tracking
of development.
Mt Jackson Iron Projects
The Mt Jackson Iron Project comprises two
granted Exploration Licences (E77/2542 and E77/2543) that are
located approximately 35 kilometres West-northwest and 38
kilometres Southwest of the Treppo Iron Project. Tenement E77/2542
is located adjacent to the Deception iron ore deposit that is
actively mined by Mineral Resources Ltd (“MRL”). Tenement E77/2543
is located adjacent to the J3 iron ore deposit owned by MRL and
previously mined by Cliffs Asia Pacific. The Company is currently
developing a program of field mapping and rock chip sampling to
understand the prospectivity for iron ore across these
projects.
EARLY REVENUE IRON ORE
OPPORTUNITES
Macarthur continues to monitor and assess the
potential for opportunities to transition to early
revenue-generating DSO iron ore operations. With the current
strength and stability of the global iron ore market, Macarthur is
examining project opportunities that have potential to generate
early revenue flows including a possible acceleration of
development of the Company’s Ularring Hematite Project at Lake
Giles.
FINANCING
The Company, through its appointed corporate
advisors EAS Advisors LLC, continues to progress financing and / or
strategic partnering discussions in parallel to the confirmatory
work being completed on the FS. As noted on the 12 August 2020
Moonshine Magnetite Mineral Resource upgrade announcement,
Macarthur now has sufficient resources in the appropriate
categories to progress its FS, which is a vital component in the
ongoing financing discussions. The Company looks forward to
updating its shareholders on these developments in due course.
OTCQB LISTING
Macarthur’s reinstatement to trade on the OTCQB
is imminent, with the Company’s acting OTCQB Sponsor and Advisor,
Northland Securities, Inc. (“Northland”), confirming that Financial
Industry Regulatory Authority (“FINRA”) Form 211 which was
submitted pursuant to FINRA Rule 6432 and Rule 15c2-11 under the
Securities Exchange Act of 1934 ("SEA") in connection with its
application to reinstate trading on the OTCQB, has been considered
by FINRA. This is the final regulatory hurdle that needs to be
cleared to enable Northland to initiate a price quotation on OTCQB
under the ticker code “MMSDF”.
COVID-19 IMPACTS
The Company has continued its highly productive
“business as usual” focus over the last quarter. COVID-19
travel restrictions remain in place within Australia. These
travel restrictions may impact upon timing for completion of
certain components of the Feasibility Study; however, at this
stage, the Company does not anticipate these impacts will
materially extend the target date for commencement of commercial
mining operations.
SUMMARY OF NON-IRON ASSETS
As previously reported, Macarthur ventured out
the majority of its gold and lithium tenements in the Pilbara
region of Western Australia 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.
Hillside tenements
During the quarter, FEL conducted further
exploration activities on the Hillside tenements following the
drilling program completed in 2019. A Fixed Loop
Electromagnetic (FLEM) survey was conducted in July 2020 across
several high priority targets generated from the SkyTEM
electromagnetic survey in 2018 and drilling in late 2019. The
survey data is currently being processed and interpreted.
Strelley Gorge & Tambourah
tenements
Macarthur holds the Strelley Gorge and Tambourah
tenements in the Pilbara region of Western Australia. The Strelley
Gorge tenement (E45/4735) is prospective for DSO iron ore and is
located immediately adjacent to the Abydos iron ore project that
has been mined by Atlas Iron. The Tambourah tenement (E45/5324) is
also prospective for iron ore having intersected iron ore in
historical drilling by Atlas Iron. The drilling focussed an
outcropping BIF prospect in the north of the tenement. Macarthur
considers both tenements prospective for iron ore and is seeking
interested parties to further explore these assets.
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.
The Company is seeking interested parties in
further exploring this asset portfolio.
NEXT STEPS
Macarthur will actively advance, with its key
partners, its core iron ore assets in Western Australia. This
includes advancing negotiations with key stakeholders to finalise
the route to market through to Esperance Port and continuing to
advance the current Feasibility Study.
In conjunction, the Company will continue to
work closely with its Joint Venture Partner, Fe Limited (ASX:FEL)
to advance exploration of its high-quality lithium, gold and base
metal tenements in the Pilbara region.
Mr Cameron McCall, Executive Chairman of
Macarthur Minerals commented:“The iron ore price has
remained strong during the second quarter, despite the COVID-19
pandemic, trading between US$82.05 and US$127.05 for 62%
iron and this price stability is creating momentum in the
global iron ore industry. The Company’s core focus will remain on
delivering a high-grade, low-impurity magnetite fines product at
its Lake Giles Iron Project which will target Asian steel mills
that are focused on producing high quality steel products, enhanced
furnace efficiencies, reduced consumption of coking coal and
improved environment emissions standard.
Macarthur continues to be singularly focused on
bringing its flagship Lake Giles Iron Project into
production. As an emerging producer of high-grade iron ore,
Macarthur has a unique opportunity to implement a different
approach with the development of one of the first new-generation
magnetite mines in Western Australia. By developing a project
that leverages the natural advantages that our high-grade, low
impurity product can provide, we are confident we can achieve this
target.
Macarthur’s Lake Giles Iron Project will aim to
be very much at the fore of a new global iron ore future that
values more sustainable steel products that are derived from
responsible mining practices, with the highest focus on safety and
with a commitment to respecting the environment and indigenous
interests. The Board and Management are committed to driving
those outcomes and delivering real value to our shareholders.”
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 |
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Investor Relations – AustraliaAdvisir Sarah Lenard,
Partnersarah.lenard@advisir.com.au |
Investor Relations - CanadaInvestor Cubed Neil Simon,
CEO +1 647 258 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 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 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
StatementsCertain 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 not limited to statements regarding
expected completion of the Feasibility Study; conversion of Mineral
Resources to Mineral Reserves 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; inability
to demonstrate economic viability of Mineral Resources; and failure
to obtain mining approvals. 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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