THE BOURSE WHISPERER: Carpentaria Exploration has raised the estimated net present value (NPV) of its Hawsons iron project to $3.2 billion.
The increase has been based on lower projected operating costs used in a recent mining option study.
The Hawsons iron project is located 60 kilometres from Broken Hill and includes an Inferred magnetite Resource of 1.4 billion tonnes at a Davis Tube Recovery of 15.5 per cent (12 per cent cut off) and an Exploration Target of six billion tonnes to 11 billion tonnes at 14 per cent to 17 per cent DTR.
This includes up to 1.9 billion tonnes of high grade magnetite concentrate.
The increased NPV represents a rise of 14 per cent from the company’s pre-feasibility study and is based on modelling of in-pit crushing and conveying by GHD with significantly reduced mining cost estimates compared to conventional truck haulage.
According to Carpentaria Exploration executive chairman Nick Sheard the company views the new results as very pleasing as they boost the prospects of a new mine being established at Hawsons.
“This builds on an already robust financial model and development concept and shows the benefits of a very large and simple deposit,” Sheard said in the company’s announcement to the Australian Securities Exchange.
“In-pit crushing and conveying is an established mining method and well suited to the Hawsons deposit, importantly it has not yet been optimised and further cost reductions are possible.”
Carpentaria described the in-pit crushing and conveying technology it intends using as a preferred option for large openpit mines with high outputs.
The systems offer advantages over traditional truck haulage by reducing haulage distances.
It also reduces the costs involved with trucks due to lower maintenance costs, reduced road preparation, fewer movements during operations, less energy consumption and longer life span.
In addition to the in-pit crushing and conveying, Carpentaria said it is also working on processing cost savings, including capital costs, to maximise the benefits of the soft ore at Hansons and its amenable magnetite liberation.
“These ongoing improved project results show the potential of Hawsons to become a company-making project for Carpentaria and an ongoing source of wealth for shareholders,” Sheard continued.
“Carpentaria will continue to work to reduce costs and strive to produce magnetite at a comparable cost to West Australian hematite producers.”