Blacksmith to cost A$150m
PERTH (miningweekly.com) – A scoping study into a direct shipping ore (DSO) operation at the Blacksmith iron-ore project, in the Pilbara, has estimated a capital cost of A$150-million.
ASX-listed Red Hawk Mining on Monday said that the three-million-tonne-a-year DSO operation was expected to have a mine life of just over 20 years, and would produce 55-million tonnes of DSO over the life of the project.
The scoping study estimated a C1 cash cost of $50/t, a pre-tax net present value of A$356-million and an internal rate of return of 35%.
“Over the past six months, Red Hawk has 'right-sized' the development plan for Blacksmith, with a focus on speed to market and lowering upfront capital. We have leveraged off the considerable work already completed at Blacksmith, including extensive drilling, metallurgical testwork, state and federal approvals, and native title agreements,” said Red Hawk MD Steven Micheal.
“The DSO mineral resource estimate (MRE) for Delta and Paragon, at 100.1-million tonnes at 60.1% iron, demonstrates there are ample resources which can produce a saleable product in the current iron-ore market. Red Hawk has progressed geological re-interpretation of the Champion and Blackjack deposits, which aims to increase the overall MRE, for inclusion in the prefeasibility study which is now under way.”
Red Hawk is planning its first iron-ore shipments in 2025.
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