How Hawsons Iron’s Dry Processing Breakthrough Could Reshape Its Future
Hawsons Iron Limited has validated a 100% dry processing circuit for its Hawsons Iron Project, securing $1.9 million in fresh capital and launching a key research collaboration with CSIRO to optimise pellet production.
- Completion of dry comminution test program supporting 100% dry processing
- Collaborative research project with CSIRO initiated to enhance pellet quality and analyze tailings
- Successful $1.9 million capital raise via Share Purchase Plan and Share Placement
- Appointment of experienced project manager and processing specialist to drive next project phase
- Board engagement with Broken Hill stakeholders to strengthen local partnerships
Dry Processing Circuit Validated
Hawsons Iron Limited has taken a significant step forward in its Hawsons Iron Project by completing a comprehensive dry comminution test program and mineral resource variability study. The results support the adoption of a 100% dry processing circuit, a notable advancement that promises to simplify operations, reduce costs, and deliver environmental benefits compared to traditional wet processing methods.
This dry processing approach not only enhances operational safety and maintenance efficiency but also aligns with sustainable waste management practices by enabling co-disposal of mine and processing wastes. The independent engineering consultancy Stantec has endorsed these findings in the recently released Project Report, which also highlights the consistency of the mineral resource, particularly in the early years of mining, thereby de-risking the project’s initial phase.
Strategic Partnership with CSIRO
The research will involve balling tests to refine binder usage, firing profile optimisation for pellet strength, and detailed characterization of tailings to assess iron liberation and impurity distribution. Access to CSIRO’s world-class facilities and expertise is expected to accelerate metallurgical advancements critical for the upcoming Prefeasibility Study (PFS).
Capital Raise and Project Advancement
During the quarter, Hawsons successfully completed a Share Purchase Plan and a Share Placement, raising a combined $1.9 million at a discounted share price. The funds are earmarked for updating the PFS, establishing maiden ore reserves, advancing metallurgical test work, conducting preliminary environmental studies, and expanding the technical team.
Notably, the company appointed Mike Daniel, a comminution and processing specialist with extensive global experience, and Mick Ryan, a veteran project manager with over 40 years in mining, to lead the next phases of project development. Their expertise is expected to be pivotal in refining the process flow sheet and steering the project through the Definitive Feasibility Study (DFS) and eventual commissioning.
Community Engagement and Financial Position
In a move to strengthen local relationships, the Hawsons board visited Broken Hill, meeting with the Local Aboriginal Land Council and Broken Hill City Council. These engagements underscore the company’s commitment to collaborative and responsible development in the region.
Financially, the company reported a modest cash balance of $0.2 million at quarter-end, with operating and investing outflows reflecting ongoing project activities. However, the recent capital raise and available financing facilities provide a runway of nearly three quarters to continue advancing the project without immediate funding concerns.
While no mining production occurred during the quarter, the focus remains firmly on de-risking and optimising the project’s technical and commercial parameters ahead of construction decisions.
Bottom Line?
With technical validation and fresh capital secured, Hawsons Iron is poised to accelerate its path toward production, but upcoming feasibility studies will be critical to sustaining momentum.
Questions in the middle?
- How will the CSIRO research outcomes influence the final pellet production process and project economics?
- What are the timelines and key milestones for the upcoming Prefeasibility and Definitive Feasibility Studies?
- How will Hawsons manage funding and operational risks given its current cash position and capital requirements?