The entrance to the Lake Giles camp. Source: Macarthur Minerals
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  • Macarthur Minerals (MIO) files an NI43-101 technical report for the feasibility study on the proposed development of its Lake Giles magnetite iron project in WA’s Yilgarn region
  • The company says the study results confirm the project is economically viable under long-term iron ore price forecasts, supporting an operation producing three million tonnes per annum of high-grade magnetite concentrate over a 25-year mine life
  • Macarthur says the proposed mining operation will potentially leverage off access to existing regional rail and port infrastructure and is targeted to produce a premium concentrate product grading 66.1 per cent iron with low impurities
  • The initial capital investment of construction of the Lake Giles mine is forecast at $801 million, with additional mine pre-production capital costs of $61.6 million
  • MIO shares down 2.38 per cent to 41 cents

Macarthur Minerals (MIO) has filed an NI43-101 technical report for the feasibility study on the proposed development of its Lake Giles magnetite iron project in Western Australia’s Yilgarn region.

The company said the study results showed the project was economically viable under long-term iron ore price forecasts, supporting an operation producing three million tonnes per annum (dry basis) of high-grade magnetite concentrate over a 25-year mine life.

Macarthur last month released the Lake Giles feasibility study to the market. Its positive economics were underpinned by maiden proved and probable ore reserves of 237 million tonnes grading an average 28.2 per cent iron and a Davis Tube Recovery (DTR) of 31.3 per cent.

The proposed magnetite operation would potentially leverage off access to existing regional rail and port infrastructure and was targeted to produce a premium concentrate product grading 66.1 per cent iron with minimal impurities suitable for pellet feedstock.

The initial capital cost of construction of the mine was estimated at $801 million, not including pre-production mining costs of $61.6 million.

According to the study, Lake Giles was forecast to churn out operating cash flows totalling about $3.6 billion over the operating life, with C1 operating costs averaging $101.05 per dry tonne.

Valuations for the project came in at a pre-tax net present value (NPV) of $816 million and an internal rate of return (IRR) of 13 per cent.

“The filing of the NI43-101 technical report for the feasibility study of the company’s high-grade magnetite Lake Giles iron project is the final step in the completion of the feasibility study process, which the company has pursued over the course of the last 18 months,” Macarthur CEO Andrew Bruton said.

“The company will now proceed with post study optimisation work, project development approvals and advancing project finance.”

MIO shares were down 2.38 per cent to 41 cents at 3:46 pm AEST.

MIO by the numbers
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