Carpentaria Exploration (ASX:CAP) is proceeding with developing its flagship Hawsons Iron Project in New South Wales as the cornerstone of a long life, low cost premium iron business with significant upside.
The company has a cash balance of $5 million and the focus on Hawsons and targeted cost reductions will allow for circa 50% decrease in expenditure from the previous year.
Separately, founding chairman Nick Sheard has retired from the board noting that the company had achieved exploration success and that he was stepping aside as it embarked on the road towards becoming a producer.
Development work is continuing with a focus on increasing infrastructure certainty, product market development and project approvals.
Hawsons is located 60 kilometres southwest of Broken Hill and has access to existing power, rail and port infrastructure.
The joint venture (Carpentaria: 60%) is currently undertaking a bankable feasibility study based on production of an initial 10 million tonne per annum premium, low cost iron concentrate product.
Hawsons’ soft rock is different from traditional hard rock magnetite and allows a fundamentally different approach to typical magnetite mining and processing challenges.
It enables simple liberation of a premium magnetite product without complex and expensive processing methods.
The project 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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