PERTH (miningweekly.com) – A feasibility study into the Lake Giles iron project, in Western Australia, has estimated that the project would have a mine life of some 20-years.
ASX- and TSX-V listed Macarthur Minerals on Monday told shareholders that the feasibility study confirmed the project could produce some three-million tonnes a year of high-grade magnetite concentrate, based on a maiden ore reserve of 237-million tonnes.
The Moonshine and Moonshine North magnetite deposits would be mined using conventional opencut methods, with mining rates to peak at 43-million tonnes a year.
The study estimated that the project would require a capital investment of $569-million, and would have an all-in C1 operating cost of $71.74/t, with the pre-tax net present value estimated at $579-million and the internal rate of return estimated at 13%.
The feasibility study also estimated that the project would generate sales revenue of some $8.9-billion.
“Macarthur is pleased to be able to provide the market with a summary of the key outputs from the feasibility study for the Lake Giles iron project. The feasibility study has been undertaken and successfully concluded amidst the challenges of Covid-19 impacts, and these results confirm that the Lake Giles iron project is economically viable under long-term iron-ore price forecasts,” said Macarthur Minerals CEO Andrew Burton.
He said that the company would now proceed with post study optimisation work, project development approvals and would advance project financing.