Carpentaria Exploration (ASX:CAP) has completed a study confirming the ability of its Hawsons Iron Project in New South Wales to plug into the existing power grid with only limited network upgrades.
Additional studies may also identify areas to optimise the connection arrangements and therefore lower the cost.
In addition, the company will explore the opportunity for this capital cost to be recovered through annual network charges, resulting in no additional upfront capital cost to the project.
Power Study
The study by network owner TransGrid concluded that existing poles and wires, plus the introduction of new voltage support, substation augmentation and communication systems, can more than support the delivery of the 120 megawatts required by the project.
A total of $43.7 million of network upgrades will be required, based on preliminary advice.
The main power upgrade item, comprising over 95% of the total cost, is directed to ensuring that the voltage impacts to the rest of the grid caused by varying load at Hawsons are acceptable.
The estimated time to complete these works is 46 months though there is potential to accelerate the delivery schedule.
Hawsons Iron Project
The Hawsons Iron Project joint venture (Carpentaria 60%, Pure Metals P/L 40%) is currently undertaking a bankable feasibility study based on the low cost, long term supply of a high grade, ultra-low impurity iron concentrate to a growing premium iron market.
The project has a clear technical and permitting pathway.
It is located 60 kilometres southwest of Broken Hill, an ideal position for mining operations with existing power, rail and port infrastructure available for a conceptual 10 million tonne per annum start-up operation. A mining lease application has been lodged.
The project’s soft rock enables simple liberation of a premium magnetite product without complex and expensive processing methods.
Hawsons is underpinned by Inferred and Indicated Resources totalling 1.8 billion tonnes at 15% mass recovery for 263 million tonnes of concentrate grading at 69.7% iron.
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