www.carpentariaex.com.au
Carpentaria Exploration (ASX: CAP) is an exploration company focused on discovering base, precious metals and bulk commodities in eastern Australia. The company currently has interests in iron ore, tin, gold, copper and coal exploration projects. Discoveries to date include: Hawsons Iron Project - NSW and the Euriowie Tin Project - NSW.
Carpentaria Exploration has maiden 1.4 billion tonne resource at Hawsons
The maiden inferred 1.4 billion tonnes at a magnetite davis tube recovered grade of 15.5% for Carpentaria Exploration (ASX: CAP) at the Hawsons Iron project near Broken Hill, equates to a contained iron concentrate of 220 million tonnes magnetite at a premium grade of 69.9% iron and 2.5% SiO2.
Improving the resource even further is that there are no significant impurities.
Carpentaria, and the market, will be anticipating the pre-feasibility study outcomes which are expected in early 2011, targeting an initial open pit with a mine life of over 15 years, with production commencing at 6 million tonnes annually before potentially ramping up to 20 million tonnes each year.
Nick Sheard, executive chairman, said "High-quality magnetite, such as that identified at Hawsons, with potential for production of direct reduction pellets can currently command prices of up to US$190 per tonne and Carpentaria has already received interest from a number of potential Asian buyers for off take of our share of future output.”
Independent geologists Hellman and Schofield Pty Ltd estimated the resource.
Hawsons has the potential for substantial future resource upgrades, as the maiden resource covers just one area within the project.
The project therefore could have a multi-decade mine life, with an exploration target of; 6 to 11 billion tonnes at 14% to 17% magnetite davis tube recovered grade with a concentrate grade of 69% to 71% iron, to a target depth of 450 metres.
The resource is open along strike to the south east and down dip.
Sheard added, “Our independent test work shows the favourable characteristics of the resource comprising large tonnages, soft mineralisation, excellent magnetite liberation and high concentrate grades."
The recently completed scoping study highlighted the low cost of mining and processing at the project, due to the softness of the magnetite siltstone with a Bond Work Index of 6.3 kWh/t.
This compares favourably to the Australian range of about 16.0 to 29.0 kWh/t for the more typical banded iron formation magnetite deposits.
Carpentaria’s joint venture partner, Bonython Metals Group, (currently at 40% equity), will have the right to pay Carpentaria $25 million to vest 51% in the JV.
Bonython would then fund a $20 million bankable feasibility study due for completion within two years.
On completion of the study, Bonython can earn an 80% interest in the project on payment of an additional $23 million in cash to Carpentaria.
Carpentaria will then retain a 20% free carried interest to 20 million tonnes annually of concentrate production operation which represents a 4 million tonne annual output for Carpentaria at this full projected production rate.
