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- Macarthur Minerals (MIO) says it’s in “pole position” to become a major iron ore producer with its Lake Giles Iron Project in Western Australia
- Throughout 2020, the primary focus has been on defining a measured resource for the project, as well as finalising a transport solution to deliver the company’s high-grade magnetite product
- According to recent data, the Kalgoorlie-Esperance rail network is currently under-utilised, which offers Macarthur the opportunity to make use of the unused capacity
- With a number of recently completed financings, the company is now looking to formalise infrastructure partner ships for the Lake Giles Project and and begin commercial production of the hematite resource at its Ularring site
- Shares in Macarthur Minerals are down 4.35 per cent and trading at 55 cents
Macarthur Minerals (MIO) says it’s in “pole position” to become a major iron ore producer with its Lake Giles Iron Project in Western Australia.
Over the course of this year, the company has been primarily focused on defining a measured resource for the project – which hosts the Ularring and Moonshine resources – along with the completion of the supporting technical report.
A key focus has also been on finalising a transport solution to deliver Macarthur’s high-grade magnetite product to market.
Central to this is the Kalgoorlie-Esperance rail network, which is currently under-utilised compared to earlier run rates, allowing for sufficient capacity to handle the company’s initial yearly output of 3.3 million tonnes of iron ore products.
Current iron ore exports through the Port of Esperance is also below capacity. The 2020 financial year saw just over 7.3 million tonnes shipped, which Macarthur said provides a variety of potential options for rail unloading, storage and ship loading solutions.
“Macarthur is in pole position to move ahead with its Lake Giles Iron Project,” Managing Director Joe Phillips said.
“The continued sub-optimal utilisation of regional rail and port infrastructure … means that Macarthur continues to have an historic opportunity not only to bring our high grade magnetite project online, but to become a player in the Yilgarn region in the foreseeable future,” he added.
With a number of recently completed financings, including a $6.25 million private placement and a $20 million controlled placement, Macarthur is now looking to achieve a number of key targets over the next 12 months.
These include formalising infrastructure partnerships needed to commercialise the Lake Giles Project, and beginning commercial production at the project’s Ularring resource.
Andrew Bruton, CEO of Macarthur Minerals, noted the determination to accelerate the development of the Lake Giles Project in the near future, adding that 2021 is set to be a “milestone year” for the company.
“Management continues to clinically focus on laying all of the necessary building blocks to deliver the Lake Giles Iron Project, and the company’s appetite to independently accelerate early production of DSO at Ularring has the potential to add material benefit for shareholders and to assist the development and funding of our main high grade magnetite project,” he said.
Shares in Macarthur Minerals are down 4.35 per cent and trading at 55 cents at market open.
