Hawsons Iron Limited reports solid progress on its Preliminary Feasibility Study for the Hawsons Iron Project, alongside promising metallurgical research with CSIRO and a successful $1.9 million capital raise.
- Preliminary Feasibility Study (PFS) well advanced with Stantec engaged
- CSIRO collaboration confirms potential for hematite recovery from tailings
- Additional metallurgical and process test work underway
- Share Purchase Plan and Placement raise $1.9 million completed
- Cash reserves at $0.9 million with financing facilities available
Progress on Preliminary Feasibility Study
Hawsons Iron Limited has made significant strides in advancing the Preliminary Feasibility Study (PFS) for its flagship Hawsons Iron Project. The company engaged independent engineering consultants Stantec to lead the PFS, which is progressing under the guidance of newly appointed Project Manager Mick Ryan. Key milestones include the completion of metallurgical test work aimed at producing a high-grade iron concentrate exceeding 68% iron content, and engineering design work focusing on primary crushers and Vertical Roller Mills (VRM). Capital and operating cost estimates are expected shortly, alongside a comprehensive project risk review that integrates environmental and social sustainability considerations.
CSIRO Collaboration Yields Encouraging Results
In parallel, Hawsons has been collaborating with CSIRO through a two-phase research project funded partly by CSIRO’s Kick-Start Program. Phase one, now complete, focused on the mineralogy of the non-magnetic iron tailings stream. The research confirmed that hematite and quartz dominate the tailings, with minimal magnetite present, indicating efficient earlier-stage magnetite recovery. Importantly, phosphorus was found mainly in discrete phosphate minerals, potentially simplifying its removal during hematite concentrate upgrading. These findings open the door to recovering hematite as a valuable byproduct, enhancing the project’s economics. Phase two is underway, concentrating on pelletising tests to optimise pellet quality for blast furnace and direct reduction applications.
Ongoing Process Test Work and Engineering
Beyond the PFS and CSIRO research, Hawsons is conducting additional process test work, including VRM sample testing at GEBR Pfeiffer’s German facilities and magnetic separation trials with Longi Magnet. These efforts aim to refine processing parameters, support recovery estimates, and inform future plant design. Such comprehensive test work underscores the company’s commitment to technical rigour as it moves toward a Definitive Feasibility Study next year.
Capital Raising and Financial Position
Financially, Hawsons completed a Share Purchase Plan and a Share Placement in July, raising a combined $1.9 million at a share price of $0.017, reflecting an 18% discount to recent trading prices. Directors and management participated alongside shareholders, contributing $95,000. At quarter-end, cash reserves stood at $0.9 million, with operating and investing cash outflows totaling approximately $1.09 million for the period. The company also maintains a financing facility with LDA Capital valued at around $1.1 million, providing additional liquidity. Recent receipt of a $488,000 R&D tax incentive and an expected $188,000 drilling bond refund further bolster the cash position.
Outlook and Next Steps
Hawsons expects to release detailed project economics following the completion of the PFS, which will be critical for assessing the viability and financing of the Hawsons Iron Project. The company anticipates steady expenditure on feasibility and test work in the near term, with the potential for further capital raising if required. The integration of environmental and social factors into project planning signals a forward-looking approach aligned with sustainable mining practices.
Bottom Line?
As Hawsons nears completion of its feasibility study, investors will watch closely for economic results and the company’s funding strategy to sustain momentum.
Questions in the middle?
- What will the final PFS reveal about the project’s economic viability and capital requirements?
- How will phase two CSIRO research impact the potential for byproduct recovery and project value?
- Will Hawsons pursue additional capital raises to extend its cash runway beyond two quarters?