THE BOURSE WHISPERER: Hannans Reward (ASX: HNR) has received results of a recently completed Scoping Study for the company’s Rakkurijoki iron deposit in Sweden.
According to Hannans the Scoping Study has determined the Rakkurijoki deposit to have the potential to supply iron product over a 12 year mine life, at a premium price, to the European and the Middle East North African (MENA) markets.
The Scoping Study evaluated the practicality of combining a low-cost logistics solution with the least mining, processing, financial and execution risk.
The company has been encouraged by the results of teh scoping study and has confirmed it will be moving to a Pre-feasibility Study (PFS) on the Rakkurijoki deposit.
The PFS will be expanded to include the Rakkurijarvi Iron deposit, located south-west of Rakkurijoki.
The company is now referring to the two deposits collectively as the Rakkuri iron project.
“The results from the Scoping Study are encouraging and we’ll complete a far greater level of analysis during the PFS,” Hannans Reward managing director Damian Hicks said in the company’s announcement to the Australian Securities Exchange.
“In terms of funding the PFS, our plan is to joint venture with a company that has a long history in developing iron ore mines.
“A partner that has an excellent track record in delivering bulk commodity projects within budget and on time.
The company indicated the focus for the Rakkuri project PFS will be on developing strict CapEx and OpEx disciplines, detailed planning, thorough financial analysis, developing a deeper understanding of both the markets for premium quality product in Europe and the MENA region, and the ability of the company to obtain the necessary environmental and social licenses.
The company has also appointed Magnus Arnqvist to the position of non-executive director.
Arnqvist is currently managing director of Kiruna Iron AB, wholly-owned subsidiary of Hannans.
“The Rakkurijoki deposit is a robust iron project with an excellent location and this has been a very thorough Scoping Study,” Arnqvist in the announcement.
“The actual mining process is straight forward, but we must now do more detailed planning during the PFS to fully understand the logistics chain, the processing, the market and the social licenses we need to operate in Kiruna.
“I look forward to continue providing oversight during that process.”