Mt Bevan's Large Magnetite Deposit

Some research I have done that might be of interest to some people. This is only an overview guideline and the information provided may vary slightly, so I suggest you do your own research. Since I hold Lcy & Haw, this will be posted on both forums.

Three(3) Large magnetite deposits occur across Australia and, in 2018, Australia had three producing magnetite projects:

1. The Sino Iron Project in the Pilbara region of Western Australia
2. Karara in Western Australia's mid-west
3. Savage River in Tasmania

Sino Iron Project - Cape Preston (Chinese consortium Citic Pacific)

• Expenditureon the project will total more than $7billion (to date $10billion)
• Thedeposit has a measured, indicatedand inferred resourceof over4 billion tonnes of magnetite
• Approx. 22.6%-31.2% Fe (based on the Balmoral deposit throughout the 1990’s & 2000's, link - http://www.portergeo.com.au/database/mineinfo.asp?mineid=mn1149)
• Once in full operation, the mineis expected to produce 27.6 million tonnes per annum of a mix of pelletsand concentrate
• MineLife: 25 years (as of Jan 1, 2016)

Karara Mine (China's Ansteel Group)

• Sinceproject inception, total capital commitment of some AUD$4 billion.

• Containsapproximately 1.4 billion tonnes of recoverable and over 2 billion tons ofestimated reserves (3.4bt).
• Approx. 35% Fe
• Goal is to produce apremium, high-grade (66-68% Fe) magnetite concentrate at a design productionrate of 8 million tonnes per annum for export to China to off-take partnerAnsteel.
• Mine Life: Has an estimated 60 year lifespan at an initial production rate of 8Mtpa. It can expand production in excess of 30Mtpa of iron products for more than 30 years

Savage River (GrangeResources - ASX: GRR)

• Market Cap :$900,000,000
• Total Resources (2020) - [email protected]%DTR
• Produces more than two milliontonnes of premium quality iron ore pellets annually.
• Mine Life : Projected mine life beyond 2030 but has been a magnetite producer for 50 years

"Mine's in Development Stage"

Magnetite Mines Ltd(ASX: MGT) in South Australia

• Market Cap : $119,000,000
• Start-UP Capex $670,000,000
• Total Resources - 5.7bt @ 15.5%Fe
  

  (Razorback Iron Project: 4.2bt@ 15.5%Fe), (Muster Dam Tenement - 1.5bt @ 15.2%Fe)

  • Mine Life : 25 years

Hawsons Iron Project (ASX: HIO) in N.S.W

• Market Cap :$153,000,000
• Estimated Start-Up CapitalCost : $1.4 billion

• Total Resources - 3bt @ 13.1%Fe

  (755 million tonnes(MT) at 14.7% Davis Tube Recovery for 111 million tonnes of high quality concentrate)

  • Mine Life : 20 years

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  Legacy Iron Ore / Hawthorne Resources

  
  Considering the amount of parties involved and how long negotiations havebeen in discussions, they are staying tight lipped with no news leaks. To methis shows how serious they are in progressing with the new J/V entity, clearlynegotiating what path to take.

  (Lcy announcement 17/12/2013 -Mt Bevan -Significant Resource Upgrade)

  Total Resources - 1.17 billion tonnes @34.9%Fe

  
  "ThisJORC Indicated resource is calculatedfor only a 2km strike of the 10km strike mineralisation.The company considers that given the excellent geological continuity of the drilled mineralisation over a 10km strike, that there isno reason to suppose that similar tonnage and gradewould not be obtained in infill drilling over the remaining 8km ofstrike."

  
  "Earlierdrilling at Mt Bevan allowed the definition of a JORC compliant InferredResourceof 2.26 billion tonnes of magnetite mineralisation grading 27.6% Fe
  or 1.59billion tonnes of magnetite mineralisation grading 30.2%Fe. The resourceextends over a 10 kilometre strike length of the WesternBIF targetat Mt Bevan".

  
  

  Conclusion

  
  

  
  

  Sothe above paragraph's tell me there is an overall "potentialresource" of 5.85 billion tonnes@ 34.9%Fe over a 10km strike length and if you take in the lower %Fe wecould potentially have a resource of 11.3billion tonnes @ 27.6%Fe.

  Compare this with the companies listed and thisbecomes a very 'large Magnetite holding' with only the Western Bif targeted.
  

  Hmmm Interesting times ahead............ !!