Hawthorn Resources completes prefeasibility study for Mt Bevan magnetite project

Legacy Iron Ore Limited (ASX: $LCY) and Hawthorn Resources Limited (ASX: $HAW) have announced the completion of a Pre-feasibility Study (PFS) for a 12Mtpa high grade magnetite project at their Mt Bevan Iron Ore Joint Venture project in the Central Yilgarn of Western Australia. The study has determined a mid point NPV of $A M of 1,674, within a range of (A$740 M) to A$3,634 M, with capital investment estimated at AUD $5B (USD $3.3B) and C1 operating costs of AUD $99/DMT (USD $64/DMT) for a 12mtpa operation.

Executive commentary on Mt Bevan magnetite project

Legacy Iron CEO Rakesh Gupta noted 'this is a significant development in the advancement of the Mt Bevan magnetite project with the release of the study showing real economics of the project, and further highlights the significant skills brought to the joint venture by Hancock. The project is truly world-class with a grade of 70%Fe making it attractive to end users. We look forward to the ongoing development of this project with our Joint Venture partners.' Hawthorn's Managing Director and CEO Brian Thornton complimented 'Hancock and their team for their professionalism in delivering a very complex PFS for a green fields, next generation iron ore project. Our commitment as joint venture partners in Mt Bevan, has been to unlock the potential of what is one of Australia's highest grade in situ magnetite deposits for the benefit of our shareholders and the nation.' Hancock noted 'The completion of the Mt Bevan Magnetite Project PFS is a significant milestone for the Joint Venture and reflects the hard work of Hancock, Legacy Iron and Hawthorn Resources.'

Summary of Mt Bevan magnetite project prefeasibility study

The completion of the Pre-feasibility Study (PFS) for the Mt Bevan Iron Ore Joint Venture project in Western Australia marks a significant milestone for Legacy Iron and Hawthorn Resources. The study has determined a mid point NPV of $A M of 1,674, within a range of (A$740 M) to A$3,634 M, with capital investment estimated at AUD $5B (USD $3.3B) and C1 operating costs of AUD $99/DMT (USD $64/DMT) for a 12mtpa operation. The Joint Venture partners have committed to commence a Forward Works Plan to further define, optimise and de-risk the project, including acquiring tenure to support water exploration and service corridors, continuing heritage and environmental surveys for approvals, and investigating other optimisation avenues including further assessment of transport options and power supply alternatives. The project aims to unlock the potential of one of Australia's highest grade in situ magnetite deposits for the benefit of shareholders and the nation, with a focus on achieving a beneficiated DRI product grade of 70% Fe, contributing to the universal goal of Net Zero economic development.