Hawsons Iron Ltd (ASX:HIO) has increased the Hawsons Iron Project’s mineral resource estimate by 21% to 484 million tonnes, including a maiden 54 million tonnes in the measured category while there are 193 million tonnes in the indicated category.
The update is sufficient to support future reserve estimation and debt financing and was based on the infill drilling campaign completed in 2021-22.
A further mineral resource upgrade is now planned for the September 2022 quarter. Key highlights include:
- 21% increase in total mineral resources estimate to 484 million tonnes from 400 million tonnes.
- Maiden measured resources of 54 million tonnes.
- 46.2% increase in indicated resources to 193 million tonnes from 132 million tonnes.
- 87% increase in measured and indicated resources to 247 million tonnes from 132 million tonnes.
Shares have been as much as 8.54% higher in early trading to $0.445.
Mineral resource estimate update and comparison.
Upgrade necessary for BFS
This is a sufficient combined measured and indicated resource to meet the company’s targeted 20 million tonnes per annum concentrate production.
The company is now looking at its bankable feasibility study (BFS) and finalising its project financing.
Managing director Bryan Granzien said of the upgrade: “The combined measured and indicated resource of 247 million tonnes sets up the BFS for the ore reserve estimation to satisfy project lenders that there is sufficient high-grade material to confidently meet targeted minimum concentrate production of 20 million tonnes per annum.
“This upgrade is significant because having these mineral resources in the higher confidence measured and indicated categories is necessary for the BFS and finalising our project financing package.
“We’re absolutely delighted with the outcome which now sets the scene for getting on with the next stage of the BFS, including completion of our detailed mine design and engineering.”
Importantly for the company, no further resource drilling was required to support the BFS and any additional work can be done at Hawsons’ discretion.
“This upgraded mineral resource estimate will now be used for discussions with potential project financiers and as the basis for all our ongoing technical work,” Granzien said.
“However, we also expect to announce a further mineral resource upgrade by the end of the September quarter to report on the results from the outstanding drilling samples which are being analysed by Bureau Veritas and added to the drill hole database.
“Moreover, the process plant's expected performance and ability is projected to achieve a 70% iroin product,” he said.
Exploration target increased
The exploration target for the Hawsons Iron Project has also been increased with a range of 5 to 18 billion tonnes at a DTR grade range of 7.5% to 34% and a concentrate iron grade range of 65.3% to 70.6%.
It should be noted though, that due to insufficient exploration to estimate a mineral resource the approximated quantity and grade of this exploration target is conceptual. It is uncertain if further exploration will result in the estimation of a mineral resource.