Hawthorn Resources has updated its Anglo Saxon gold project with a revised pit optimisation study reflecting higher gold prices and plans an 8,000m drilling program to de-risk mining. Meanwhile, the company converted its Mt Bevan equity stake to a 1% FOB royalty, positioning for future value from premium magnetite production.
- Revised pit optimisation study completed for Anglo Saxon gold project
- 8000m RC drilling program planned to de-risk potential mining cutback
- Mixed drilling results at Harbour Lights South and Exile prospects
- Mt Bevan equity converted to 1% FOB royalty with JV partners advancing Forward Works Plan
- Strong cash position of A$12.98 million maintained at quarter end
Anglo Saxon Gold Project Optimisation
Hawthorn Resources Limited, through its 70% interest in the Trouser Legs Joint Venture, has completed a revised pit optimisation study for the Anglo Saxon gold project in Western Australia. This study, conducted by MineComp of Kalgoorlie, incorporates various gold price scenarios and cost inputs to assess the feasibility of extending and widening the current open pit. The optimisation is based on the existing Mineral Resource Estimate (MRE) of 157,000 ounces at 6.1 grams per tonne, reaffirming confidence in the project's high-grade ore body.
The study aims to maximise project returns amid robust Australian dollar gold prices and will support ongoing discussions with potential development partners. Site visits and data room access have been granted to several interested parties, indicating active engagement in advancing the project.
Drilling Programs and Exploration Updates
During the March quarter, the Joint Venture undertook a small reverse circulation (RC) drilling program at the Harbour Lights South and Exile prospects to confirm and extend historically defined mineralisation. Results were mixed, with the standout intercept being 35 meters at 1.91 g/t gold from surface in hole 25TLRC003 at Harbour Lights South. While some holes failed to extend mineralisation, this intercept suggests better continuity than previously understood.
Building on this, Hawthorn has designed an 8,000-meter RC drilling program planned for the third quarter of 2025. This program targets the southern extension of the Anglo Saxon resource to de-risk the first stage of any mining cutback, a critical step toward advancing development.
Exploration at the Pinjin East projects (E31/1050 and E31/782) continued with infill auger sampling, successfully extending the surface footprint of gold systems and generating multiple new targets for follow-up drilling. These efforts underscore Hawthorn's commitment to expanding its resource base in the region.
Mt Bevan Magnetite Project Royalty Conversion
In a strategic move, Hawthorn converted its 19.6% equity interest in the Mt Bevan Magnetite Project to a 1% Free-On-Board (FOB) royalty with Hancock Magnetite Holdings Pty Ltd and Legacy Iron Ore Limited, who now hold majority stakes. The Mt Bevan project boasts a substantial Mineral Resource Estimate of 1,291 million tonnes of magnetite, confirmed by a Pre-Feasibility Study (PFS) released in July 2024.
JV partners Hancock and Legacy have initiated a Forward Works Plan to refine the PFS and key project parameters, advancing toward an investment decision and financial close. Hawthorn views the royalty as a valuable exposure to next-generation, greener direct reduced iron (DRI) steel production, aligning with evolving market demands.
Financial and Corporate Position
Hawthorn maintains a solid cash position of A$12.98 million as of the quarter's end, supporting ongoing exploration and development activities. The company continues to monetise low-grade stockpiles at Anglo Saxon to generate positive cash flow, aiming to self-fund exploration and operational costs. Shareholding remains stable with no changes in issued securities during the quarter.
Looking ahead, the company is progressing environmental and heritage surveys at Mt Bevan and exploring alternate power supply options to optimise project energy solutions. These steps reflect a comprehensive approach to project development, balancing operational efficiency with regulatory compliance.
Bottom Line?
Hawthorn’s strategic optimisation and royalty conversion position it well for value growth, but upcoming drilling results will be pivotal.
Questions in the middle?
- Will the planned 8,000m RC drilling at Anglo Saxon confirm resource extensions and support mine development?
- How will negotiations with potential partners influence the timeline and scale of Anglo Saxon’s next development phase?
- What impact will the Mt Bevan royalty have on Hawthorn’s future revenue streams amid evolving iron ore markets?