CAP - Facts and Figures, page-121

Hi Redned

Its not the head grade (which is low even compared to other magnetite deposits) that makes the Hawsons project special, but the type of ore which they call very "soft" making it very easy (and cheap) to process to very high 70% concentrate grades. That in combination with the sheer scale of the deposit and the location close to rail transport (and road, electricity and water) and a big town, cutting transport cost (IO is for a good part logistics) and keeping the capex lower as well (no need to build a mining camp) make this an economically superior project.

I mean really 48USD per ton CFR China for 70% IO is simply outstanding, even if you account for some cost increases and go with 55 or 60USD shipped to China there are very few projects that can compete on a cost basis. Lower grades of hematite ore are cheaper to mine but shipping is the same and the price you get for it will be lower. And with the world going green the high grades will only divert further in price.

If they can pelletize some o top of that the picture gets even better. Pellet premiums have been well above 60USD per tonne for some time.

Even if you are negative about the future of IO prices, superior deposit will eventually always get mined. Hawsons is that.

Will be very interesting to see what MGT comes up with, but I suspect they won't be as good.