Name of the Project
Hawsons iron project.

Location
The project is located near Broken Hill, in New South Wales, Australia.

Project Owner/s
Carpentaria Exploration (66.5%) and Pure Metals (33.5%).

Project Description
A prefeasibility study has shown the project has robust economics for the production of ten-million tonnes a year of Hawson’s Supergrade, with a product specification of 69.9% iron for a mine life of 20 years. The ore is to be mined and processed on site, with the final mineral concentrate being transported by slurry pipeline to a rail head site near Broken Hill.

The truck-and-shovel mining method will be used for prestripping and the early mine plan, while in-pit conveying (IPC) will be used in Year 5 once meaningful depths have been reached. The plan is to use the conveyor for the vertical lift and the trucks for horizontal movement, maximising the use of comparatively cheap electrical power, reducing truck hours and improving safety.

Following a prestrip of about 150-million tonnes, the life-of-mine waste:ore ratio is 0.40, dropping to near zero by Year 11.

A total of 1.41-billion tonnes of ore and 568-million tonnes of waste are mined after prestripping. A maximum mining rate of 152-million tonnes a year is expected to be achieved in Year 7. All major processing will occur in the magnetite concentrator at the mine site before transporting the concentrate in slurry form to the railhead for dewatering. Tailings will be thickened and pumped to a circular tailings storage facility, and single-cell and perimeter discharge will be used.

Potential Job Creation
Hawsons is expected to create more than 1 200 jobs in construction, and 500 jobs in steady-state production.

Net Present Value/Internal Rate of Return
The project has a post-tax geared net present value, at a 10% discount rate, of $1.09-billion and an internal rate of return of 30%.

Capital Expenditure
Preproduction costs have been estimated at $1.4-billion.

Planned Start/End Date
Not stated.

Latest Developments
Carpentaria Resources will raise A$35.6-million through a share placement and a 1-for-2.6 underwritten entitlement offer, to fund a bankable feasibility study (BFS) for its Hawsons iron project.

The share placement, consisting of 54.3-million shares at 15c a share, will be placed in two tranches, with the first tranche of 13.3-million to raise A$2-million under the company’s existing placement capacity.

The second tranche placement of 41-million shares, to raise a further A$6.15-million, will be subject to shareholder approval at a meeting scheduled for August 16.

In addition to the share placement, Carpentaria will also undertake a 1-for-2.6 underwritten entitlement offer of about 183-million shares, to raise a further A$27.5-million.

Following the capital raise, Carpentaria will have a clear path to complete a BFS for Hawsons, which the company is confident will further demonstrate the project as one of the world’s best undeveloped iron-ore projects.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Carpentaria Exploration, tel +61 7 3220 2022 or email info@capex.net.au.