Hawthorn Resources has decided to convert its participating interest in the Mt Bevan magnetite project to a royalty.
The Mt Bevan magnetite project is a joint venture (JV) with Hancock Magnetite, Legacy Iron and Hawthorn Resources. It is located 250km north of Kalgoorlie and 100km west of Leonora in the central Yilgarn region of Western Australia.
Mt Bevan currently holds an indicated resource of 380 million tonnes of iron ore at a grade of 33.94 per cent of iron with a DTR (Davis Tube Recovery) of 43.15 per cent.
Mt Bevan’s recently completed pre-feasibility study was for a 12 million tonne per annum operation. As a result, Hawthorn will convert its 19.6 per cent equity interest in the project to a one per cent royalty of net free-on-board revenue.
As a result, Hawthorn will not be required to contribute to the recently approved $20 million forward works program, which is intended to further define, optimise and de-risk Mt Bevan, to maintain its interest in the JV.
The program will take place over a two-year period and will include works such as the conversion of the exploration licence to a mining lease, continuing heritage and environmental surveys over the project’s footprint, and continuing engagement with relevant state and federal government departments.
The JV partners will also further marketing studies related to premiums for direct-reduced grade iron ore and continue converting Mt Bevan’s mineral resources to ore reserves.
Once the forward works program is complete, Mt Bevan will proceed to a feasibility study to advance the project towards a financial investment decision.
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