Join our daily newsletter At The Bell to receive exclusive market insights
- Lake Giles has proved to be one of the largest magnetite projects in the Yilgarn region, with a projected three million tonnes per annum (mtpa) of 66.1 per cent ore for the next 25 years
- Mining majors such as Mineral Resources and Hancock Prospecting are circling the region for investment opportunities into higher fines ore
- Steelmakers around the world are looking for cleaner, ‘greener’ iron ore to lower carbon emissions
- The project is located in an infrastructure-ready location for ore-to-port transportation
- Shares in Macarthur Minerals are up 1.72 per cent today at $0.59 each
Did anyone miss this one? If the answer’s yes, then you’ll want to start getting across Macarthur Minerals (MIO) to find out why they’re excited to be camped on top of an enormous amount of iron ore magnetite, 175 kilometres northwest of Kalgoorlie, WA.
The Brisbane-based mining executives are proving their worth to mining majors and shareholders alike on the back of a March 21 positive feasibility study (PFS) of their Lake Giles project in the magnetite-rich Yilgarn mining region.
The PFS of Lake Giles shows a production target of three million tonnes per annum (mtpa) of 66.1 per cent high-grade magnetite worth more than $12 billion over its expected 25-year mine life, underpinned by a recent maiden ore reserve (MOR) of 237 million tonnes.
Macarthur Minerals CEO Andrew Bruton and his team have worked hard over the last 12 months to prove the viability of the project, with recent results catching the eyes of investors already.
Mr Bruton said the team’s efforts to produce the MOR and PFS ahead of schedule was the culmination of about 10 years of exploration and planning for Lake Giles.
“We’re excited to have proven that we have an economically viable resource sooner than expected, as it also places us as the most technically advanced magnetite project in the Yilgarn and we are now in the process of securing funding for the project to be a first mover in the region,” he said.
“Our company is actively examining the involvement of strategic partners for Lake Giles and at the end of the day, however we secure project funding, our sole focus will be on delivering value for shareholders.
“The next six to twelve months is clearly laid out for us to move into the project execution phase.”
Opportunity Knocking
There’s a lot to be happy about in the magnetite space of late, with billionaire miners Gina Rinehart and Chris Ellison turning their attention to the Yilgarn region’s magnetite.
This is because magnetite ore produces a much cleaner or ‘greener’ grade of concentrate than the Pilbara’s 62 per cent hematite iron, making it the concentrate of choice for steelmakers as they look to lower their own carbon emissions in accordance with emissions targets across the globe.
It comes as no surprise, then, to see that Rinehart’s Hancock Prospecting has already sunk a cool $9 million into Legacy Iron Ore and Hawthorn Resources’ 60/40 Mt Bevan magnetite JV back in November last year, giving it a 30 per cent stake in the project.
Equally as important is the news that Ellison’s MinRes is eyeing off magnetite juniors in the Yilgarn as it considers the development of a $400 million, 5.2mtpa production plant within the next four years at its existing direct shipping ore (DSO) link between nearby Koolyanobbing and the Port of Esperance.
More than enough capacity to handle production from Lake Giles for decades.
The upside investment potential for magnetite players like Macarthur is massive, as is a farm-in stake into the project by big miners with ready-to-go infrastructure.
Will it be the next big iron ore project to jump out of WA?
Shares in Macarthur Minerals are up 1.72 per cent today at $0.59 each.
