Mt Bevan Magnetite PFS Confirms 1.29 Billion Tonnes; Hawthorn Secures 1% Royalty
Hawthorn Resources has completed a pivotal Pre-Feasibility Study for its Mt Bevan Magnetite project and strategically converted its equity stake into a royalty, positioning the company for future value capture amid evolving market dynamics.
- Mt Bevan Magnetite Pre-Feasibility Study confirms 1,291Mt resource with high-grade DRI product
- Hawthorn converts 19.6% equity interest in Mt Bevan JV to 1% FOB royalty
- Lithium exploration results inconclusive, prompting JV review amid weak lithium market outlook
- Anglo Saxon Gold Project benefits from record gold prices with new optimisation study underway
- Company maintains strong cash position of A$12.94 million at quarter-end
Mt Bevan Magnetite: A Strategic Pivot
Hawthorn Resources Limited has marked a significant milestone with the completion of the Pre-Feasibility Study (PFS) for its Mt Bevan Magnetite project in Western Australia. Conducted by joint venture partner Hancock Magnetite Holdings Pty Ltd, the study confirmed a robust mineral resource estimate of 1,291 million tonnes of magnetite. Importantly, the beneficiation process yields a premium Direct Reduction Iron (DRI) grade exceeding 70% iron content with low silica impurities, positioning Mt Bevan as a high-quality feedstock for greener steel production technologies.
In a strategic move, Hawthorn converted its 19.6% equity interest in the Mt Bevan JV into a 1% Free-On-Board (FOB) royalty. This shift reflects a calculated approach to secure a steady revenue stream from future production while mitigating capital exposure. The company anticipates that this royalty will become a valuable asset as the project advances towards production, aligning shareholder interests with the emerging demand for sustainable steelmaking inputs.
Exploration Challenges and Market Realities
While the magnetite project shows promise, exploration efforts for lithium and other critical minerals within the Mt Bevan JV have yielded inconclusive results. Approximately 8,000 meters of reverse circulation drilling targeted lithium pegmatites, but assays revealed only weak lithium enrichment. Given the subdued outlook for lithium pegmatites, the JV partners are reassessing the project's potential and future exploration strategy. This cautious stance underscores the volatility and evolving nature of the lithium market, which remains a key driver for battery metals investment.
Gold Prospects Gain Momentum
On the gold front, Hawthorn's Anglo Saxon Gold Project continues to attract attention amid sustained record gold prices. The project holds a current mineral resource estimate of 154,000 ounces at a high grade of 6.1 grams per tonne. To capitalise on favourable market conditions, the company has commissioned an updated optimisation model to explore development options. Discussions with potential partners are reportedly at an advanced stage, supported by recent site visits and data room access. Additionally, a planned 8,000-meter reverse circulation drilling program aims to de-risk near-surface extensions of the resource, potentially enhancing project economics.
Financial Position and Forward Outlook
Hawthorn closed the quarter with a solid cash balance of A$12.94 million, reflecting prudent financial management amid ongoing exploration and development activities. The company is advancing a Forward Works Plan for Mt Bevan in 2025, focusing on staged, lower-cost initiatives to refine project parameters ahead of a full feasibility study and investment decision. Environmental and hydrological surveys are underway, alongside infrastructure planning and stakeholder engagement to optimise logistics from mine to port.
While the lithium exploration results temper near-term optimism, the combination of a high-grade magnetite resource with a royalty income model and advancing gold assets provides a diversified platform for value creation. Hawthorn's strategic decisions suggest a focus on balancing risk with opportunity as it navigates the complex commodity landscape.
Bottom Line?
Hawthorn’s royalty pivot and advancing studies set the stage for unlocking Mt Bevan’s value amid shifting market dynamics.
Questions in the middle?
- How will the Forward Works Plan outcomes influence the timing of Mt Bevan’s feasibility study and investment decision?
- What are the implications of the weak lithium results for Hawthorn’s broader critical minerals strategy?
- Can the Anglo Saxon Gold Project’s optimisation study attract new partners or accelerate development?