Hawsons Iron Drives 30% Cost Savings with Dry Processing Innovation

Process Optimisation Focuses on Cost and Environmental Gains

Hawsons Iron Limited has intensified its efforts to optimise the processing plant for its Hawsons Iron Project, with a particular emphasis on dry crushing and comminution circuits. Working alongside engineering consultants Stantec Australia, the company is exploring the feasibility of replacing the current wet processing base case with a dry circuit alternative. Early assessments suggest potential capital expenditure reductions of approximately 30%, alongside operating cost savings in the range of 25-30%. These savings could be transformative for the project’s economics, especially given the environmental and permitting advantages of a dry process that reduces water usage.

Preliminary vendor discussions indicate that further efficiencies may be achievable, though ongoing test work will be critical to validate these findings. Hawsons has prioritised investigating a 100% dry circuit, which could also streamline scheduling and reduce environmental risks associated with wet processing.

Unlocking Value from Tailings Through By-Product Studies

Complementing the process optimisation work, Hawsons has initiated a study into extracting valuable by-products from its tailings stream. This includes the potential recovery of high-grade silica sands and non-magnetic iron fractions, which could open new revenue streams and improve overall resource utilisation. The study is expected to conclude by the end of the second quarter of 2025, offering investors a clearer picture of the project’s expanded value proposition.

Metallurgical Testing to Inform Future Development

During the December quarter, the company conducted variability and metallurgical test work focused on the Fold Zone of the deposit. This testing is designed to provide critical data for upcoming resource drilling campaigns, mine planning, and finalising the process flow sheet. Completion is anticipated by the end of the first quarter of 2025, setting the stage for more detailed project development decisions.

Strengthening Stakeholder Relationships Across Regions

Hawsons has maintained active engagement with key government stakeholders at multiple levels, including meetings with the NSW Premier, Minister for Natural Resources, and local Broken Hill officials. Discussions have centred on the socio-economic benefits the project could bring to the region, reinforcing Hawsons’ commitment to community and governmental collaboration. Additionally, the company has engaged with South Australia’s Steel Task Force, positioning the project as a potential cornerstone in the state’s green iron and steel strategy given its high-grade product and geographic proximity.

Community outreach continues with local landholders and indigenous groups, ensuring transparent dialogue around project activities and potential impacts.

Strategic Investor Process Extended to Capture Optimisation Benefits

Hawsons is progressing through Stage 2 of its Strategic Investor process, involving detailed technical data room reviews and briefings on the optimisation and by-product studies. Recognising the potential material upside from these initiatives, the company has extended the timeline for this process to fully quantify their impact. This approach aims to maximise shareholder value in any forthcoming funding arrangements.

Financial Position and Operational Discipline

At the end of December 2024, Hawsons reported cash reserves of $1.7 million, with operating cash outflows significantly reduced to $0.40 million for the quarter, reflecting disciplined cost management. Investing outflows of $0.22 million were attributed to ongoing operational activities. The company’s focus remains on minimising overheads to prioritise funding for project advancement.

Hawsons also maintains an unused financing facility of $2.5 million through a Put Option Agreement with LDA Capital, providing additional financial flexibility as the project progresses.

With no mining production or development activities during the quarter, the company’s efforts have been squarely on technical optimisation, stakeholder engagement, and preparing for the next phases of project advancement.