Macarthur aims to accelerate Giles Lake DSO campaign
VANCOUVER, British Columbia, May 26, 2021 (GLOBE NEWSWIRE) – Macarthur Minerals Limited (TSX-V: MMS) (ASX: MIO) (OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to announce that it is advancing mine planning work to support the planned hematite mining operations at Lake Giles in Western Australia.
The company has started to prepare a mining plan for a direct shipment ore product (DSO) as part of a mining campaign that will initially target the Snark and Drabble Downs deposits of the Lake Giles Ularring hematite project.
In 2012, the Company completed a pre-feasibility study (PFS) of the Ularring Hematite project (“Project”) which included the upgrading of low grade iron mineralization.1. Considering the current strength of the global iron ore market, the Company believes that it is possible to develop a simple DSO operation with mobile crushing and screening equipment. The company’s mining planning work will be based on this foundation, targeting a low-capital, rapid development scenario.
This low cost approach does not diminish the potential for an enriched sinter fines product as anticipated in the original 2012 PFS.
The Snark and Drabble Downs deposits are located in close proximity to the Evanston-Menzies road which is currently used for ore hauling by local gold miners. This road offers direct access to the watertight motorways at the ports of Geraldton and Esperance as well as to free-access rail networks.
The company engaged with road transport contractors and identified rail transport and export options using existing regional infrastructure. In addition, the Company has applied for various licenses to support the development of a mining camp and mining services infrastructure and is in talks with owners of neighboring housing for access to water wells.
1 NI 43-101 Technical Report filed October 1, 2012, titled “NI 43-101 Technical Report, Macarthur Minerals Limited, Pre-feasibility Study, Ularring Hematite Project, Western Australia.”
Detailed mine planning work is focused on the hematite deposits located in the Snark and Drabble Downs prospects where the direct shipment ore product (DSO) has been defined (see Figure 1 below).
The work to be undertaken will support regulatory approval of a mining proposal and the call for tenders for contract mining services, and will include:
- project optimization;
- mine design and development;
- DSO mine planning;
- estimate of mining costs; and
- implementation planning.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/348a306a-e70f-4acb-be67-27f045f902cc
Mine planning and associated geotechnical assessment work is expected to be completed by the end of June, and Macarthur intends to file a mining proposal with the Ministry of Mines, Regulation of Industry and Security (DMIRS) during the third quarter of this year.
The company has identified options for an export route to support planned DSO mining operations and aims to finalize arrangements for its preferred product transportation and export solution shortly.
Following the approval of the mining plan by DMIRS and subject to obtaining the remaining project development approvals and the closure of project financing, the company intends to target the start of DSO production at Ularring in the first available opportunity.
Andrew Bruton, CEO of Macarthur Minerals, commented:
“Iron ore is seeing one of the biggest price increases in decades, and our shareholders look forward to the company’s advancement in the early hematite mining operations at Ularring.
The current market has presented both opportunities and challenges in recent months as the company faces growing competitive demand for transport infrastructure and port access.
Macarthur’s management team rose to the challenge and worked to come up with a solution that aims to take advantage of the current strength in iron ore prices by advancing early mining operations.
The first mining operations will also support the Company’s goal of starting high-grade magnetite mining operations at its Moonshine and Moonshine North deposits after the current feasibility study process is completed.
We are pleased to finally provide the market with the details of the next step towards completing this much anticipated business milestone, and look forward to keeping investors informed of the exciting developments on the road to achieving our first. iron ore shipment. Further progress announcements will follow in the coming weeks.“
On behalf of the Board of Directors, Mr. Cameron McCall, Chairman
Macarthur is an iron ore, gold and lithium exploration company focused on bringing its iron ore projects into production in Western Australia. The mineral resources of the Lake Giles iron project 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 Giles Lake magnetite resource of 53.9 million tonnes (measured), 218.7 million tonnes (indicated) and 997 million tonnes (inferred). Macarthur has significant exploration interests (~ 721 square kilometers) in gold, lithium and copper exploration in the Pilbara region of Western Australia. In addition, Macarthur holds lithium brine concessions in the emerging Railroad Valley region of Nevada, United States.
This press release is not intended for United States service distribution or for distribution in the United States.
Caution Regarding Forward-Looking Statements
Certain statements 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 contained herein, other than statements of historical fact, that deal with activities, events or developments that the Company believes, expects or anticipates will occur or may occur in the future, including, but not limited to ‘limit therein to statements regarding the planned completion of the feasibility study; the conversion of mineral resources to mineral reserves or the eventual exploitation of the project are forward-looking statements. The forward-looking statements contained in this press release reflect the current expectations, assumptions or beliefs of the company based on information currently available to the company. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these 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 forward-looking statements. Factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to: unforeseen technological changes that result in reduced demand for iron or magnetite or substitution by other metals or materials; the discovery of new large, low-cost deposits of iron magnetite; the general level of world economic activity; inability to complete FS; failure to demonstrate the economic viability of mineral resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements because of their inherent uncertainty. These 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 otherwise provided by applicable law, the Company assumes no obligation to update or revise these forward-looking statements, whether as of following new information, future events or otherwise.