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Macarthur Minerals Files Technical Report For Lake Giles Iron Ore Project In Western Australia

Mining News - Published on Thu, 20 Jun 2019

Image Source: SteelGuru
Cadence Minerals announced from Macarthur Minerals regarding the results of the Preliminary Economic Assessment undertaken by independent consultants Engenium Pty Ltd for its 100% owned Lake Giles Iron Ore Project in Western Australia. The PEA was completed for a 2.5 to 3.4 million tonne per annum operation incorporating the Moonshine Magnetite and Ularring Hematite Mineral Resources to produce a high-grade blended concentrate in excess of 65% Fe. The technical and financial evaluation in the PEA indicates the Project is potentially economically viable and further project development is justified.

The independent technical report, entitled "NI43-101 Technical Report, Macarthur Minerals Limited, Preliminary Economic Assessment Lake Giles Iron Project, Western Australia, with an issue date of June 13, 2019, was prepared in accordance with the requirements of National Instrument 43-101. The 2019 Technical Report is filed under the Company's profile on the System for Electronic Document Analysis and Retrieval website at and on the Company's website at

Cadence holds approximately 9.8% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

Macarthur PEA Highlights

Project after-tax real Net Present Value of USD 375 million at an 8% discount rate, based on a discounted cash flow model with:

a project life of 31 years with saleable product of 2.5 to 3.4 million tonnes per annum
total sales of 83 million tonnes; and

Total Life of Mine free cash flow of USD 1,465m.

Total direct operating costs are estimated at USD 3.1 billion.

Total project costs direct and indirect operating costs, capital spend including contingency, rehabilitation and sustaining capital are estimated at USD 4.5 billion.

The project is potentially highly profitable with a discounted payback in 3 years.

Average operating costs of USD 37.62 including USD 31.30 per tonne Free on Board for hematite and USD 37.43 per tonne FOB for magnetite.

Total revenue estimated at USD 6.8 billion.

Total capital cost estimated at USD 326 million including contingency of USD 44 million.

Rehabilitation costs of USD 38 million and sustaining capital expense over LOM of USD 54 million.

Source :

Posted By : Sanju Moirangthem on Thu, 20 Jun 2019
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