Hawsons Declares 2.3Bt Ore Reserve with 10.9Mtpa Production Target

Project Overview and Reserve Declaration

Hawsons Iron Ltd has taken a major step forward in its development of the Hawsons Iron Project, located in the Braemar region of New South Wales, by declaring a JORC-compliant Probable Ore Reserve Estimate of 2.3 billion tonnes. This reserve carries an average grade of 11.7% Davis Tube Recovery (DTR) and 16.7% total iron, underpinning a substantial resource base for the company’s ambitions.

The declaration follows the completion of a comprehensive Pre-Feasibility Study (PFS) that confirms the technical and economic viability of the project. The PFS outlines a robust development strategy targeting production of up to 12 million tonnes per annum (Mtpa) of high-grade magnetite concentrate (+68% Fe) over a 26-year mine life, based solely on the Ore Reserve.

Technical and Economic Highlights

The PFS results are encouraging, with a pre-tax internal rate of return (IRR) of 10.93% and a net present value (NPV8) of AUD 1.36 billion, assuming a product price of US$140 per dry tonne and an Australian dollar to US dollar exchange rate of 0.65. The project anticipates a payback period of approximately 13.5 years from the start of engineering, procurement, and construction management (EPCM), or 10.5 years from first concentrate production.

Capital expenditure is estimated at AUD 3.91 billion for initial development, with a further AUD 1.05 billion deferred for a second phase of production expansion. Operating costs are competitive, with a C1 cash cost of US$49.34 per dry metric tonne and a CFR cost of US$89.94 per dry metric tonne, positioning Hawsons well within the cost curve for magnetite producers.

Innovative Dry Processing and Environmental Benefits

A key innovation in the project is the adoption of a 100% dry primary comminution circuit, which has significantly reduced power consumption by over 30% and water requirements by 60-70% compared to previous plans. This approach leverages the unique softness and low abrasiveness of the Hawsons ore, enabling the use of vertical roller mills common in cement industries. The dry processing route not only improves environmental outcomes but also enhances project economics.

The project’s infrastructure plan includes a 43-kilometre rail spur connecting to the Australian Rail Track Corporation (ARTC) network and export via Port Adelaide, supported by existing regional infrastructure. Water will be sourced from the Lower Renmark Aquifer, and power supplied via a new 220kV transmission line connection.

Risks, Opportunities, and Next Steps

While the PFS results are positive, the project faces challenges typical of large-scale mining developments. The upfront capital requirement of approximately AUD 4.43 billion is substantial, and securing funding on favorable terms remains uncertain. The company has engaged Cutfield Freeman & Co to assist with financing strategies and is confident in its ability to attract investment given the project's scale, location, and resource quality.

Key risks identified include metallurgical recovery uncertainties, geotechnical design, environmental approvals, and infrastructure development. However, the PFS also highlights several upside opportunities such as upgrading inferred resources, improving concentrate grade, byproduct extraction, and operational optimizations like fleet electrification and conveyor haulage.

Hawsons plans to advance to a full Feasibility Study in 2026, incorporating further drilling to upgrade resources, confirmatory metallurgical testwork, and environmental permitting aligned with development timelines. The company continues to engage with local Aboriginal groups and stakeholders, ensuring cultural heritage and social license considerations are integrated into project planning.

Market Positioning and Strategic Outlook

The Hawsons magnetite concentrate is well positioned to meet growing demand for high-grade iron ore feedstock, particularly for the emerging green steel market. Its low impurity, high iron content product is suitable for direct reduced iron (DRI) processes, which are central to steelmakers’ decarbonization efforts. Letters of Intent with marketers and steel mills underscore the market interest in Hawsons’ product.

With a large, consistent resource, supportive infrastructure, and a clear development roadmap, Hawsons Iron is poised to become a significant new player in Australia’s magnetite sector, contributing to the global transition towards greener steel production.