RE: RE: News22 Aug 2019 14:52
LAKE GILES IRON ORE PROJECT UPDATE
Macarthur Minerals Limited (TSX-V: MMS, OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to provide an update to Shareholders outlining recent activities advancing the Lake Giles Iron Ore Project in the Yilgarn Region of Western Australia.
Significant advancement has been made in the following areas:
? Diamond and RC drilling infill programme has commenced to support a resource category upgrade and obtain samples for metallurgical test work
? Development of the Commercial and Technical capabilities in the Company to deliver the completion of a Bankable Feasibility Study
? Application for in-principle advice seeking consideration from the Australian Stock Exchange (“ASX”) for a proposed dual listing of the Company
? Discussions with commercial partners for power and water supply, mining services, road and rail haulage, port infrastructure development and process plant design and construction
Macarthur will release more detailed information to the market on these key project developments as they are finalized.
Mr Cameron McCall, Executive Chairman of Macarthur Minerals commented:
“The first half of 2019 has been very rewarding for the Company with the closure of an Offtake agreement with Glencore, rail haulage negotiations with Aurizon, successful closure of capital raising to fund the delivery of a Bankable Feasibility Study; the positive result of the Lake Giles Iron Ore Project in the June 2019 Technical Report with improved capital and operating costs of the project. During this period Macarthur also repositioned its non-iron ore assets for gold, lithium and copper in the Pilbara region of Western Australia into an ‘earn-in Agreement’ with an active explorer Fe Limited, allowing Macarthur to concentrate its full focus on the iron ore projects.
Some shareholders have contacted me about the recent decline in the share price on the TSX-V. Let me assure you there are no Project or Company issues contributing to this decline. The global sentiments around China/USA relations; US economic slowdown; volatility across major stock exchanges and the recent pullback of the iron ore spot prices to US $95/tonne, all have in part, contributed to this share price decline.
The Lake Giles Iron Project, with its stated costs for magnetite production of US$37.43/tonne still provides a robust margin today for the Company’s target 3Mtpa product of 65% Fe magnetite concentrate.
Moving forward, the Board is seeking ‘in principle’ consideration from the Australian Stock Exchange for a dual listing of Macarthur Minerals. Australia is seen as a logical exchange given investor and institution familiarity in mining, specifically iron ore and the geographic proximity to its Lake Giles Iron Project. Australia and specifically Western Australia, is the largest iron ore supplier in the world, accounting for 39% of global supply in 2018 exporting over 800 million tonnes per annum.
Over the course of the coming months, Macar
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