Hawsons uncovers a second iron product as magnetite grade reaches 69.3% Fe

Bulk testwork confirms premium-grade magnetite pathway

Hawsons Iron Limited (ASX:HIO) has strengthened the processing case for its Hawsons Iron Project, upgrading a bulk concentrate sample from 67.8% Fe to 69.3% Fe through elutriation. The work also significantly reduced silica and alumina, according to the company, supporting the project’s stated aim of producing a premium magnetite concentrate grading at least 69% Fe.

The result confirms the earlier bulk elutriation testwork that lifted the same sample from 67.8% Fe to 69.3% Fe and led to elutriation being included in the updated Pre-Feasibility Study flowsheet. Hawsons says the higher grade could improve product premiums and distinguish its concentrate from much of the globally traded iron ore market, although the final benefit remains dependent on product quality, recovery and project economics.

The next phase will fine-tune elutriation conditions during the Feasibility Study. That work is intended to balance concentrate grade, recovery and operating parameters rather than simply maximise any one measure.

Waste stream produces a second iron opportunity

Separate testwork has identified a technically credible route to recover additional iron, principally hematite, from the non-magnetic stream generated by the proposed processing circuit. The program recovered 75.0% of the iron in that waste stream while rejecting 59.6% of silica and 67.5% of alumina.

Reverse flotation showed that the material responds to beneficiation, but the possible by-product remains at an earlier stage than the main magnetite stream. Hawsons is targeting a 55-60% Fe hematite concentrate, separate from and in addition to the planned 10 million tonnes per annum of high-grade magnetite concentrate. Further magnetic-separation and flotation work will compare circuit configurations before a full commercial study.

Capital raise extends funding but leaves a short runway

Hawsons completed its share purchase plan during August, raising $1.23 million through the issue of 111.82 million shares at $0.011 each. Subscribers also received one free attaching option for every share, with the options exercisable at $0.015 and expiring on 31 December 2027. The completed $1.23 million share purchase plan had previously been described as funding hematite studies, pelletisation, heritage surveys and working capital.

Cash stood at $901,000 at 30 September, after operating outflows of $428,000 and exploration and evaluation spending of $311,000 during the quarter. On the Appendix 5B calculation, that equated to 1.22 quarters of funding. Hawsons subsequently received $658,000 from its FY2026 Research and Development Tax Incentive, but that payment was not included in the quarter-end cash balance.

The company said annual ASX listing, audit and tax payments totalling $118,000 had weighed on the latest quarter and were not expected to recur in the following two quarters. It also said project spending should remain similar, while future capital raisings would be considered as required. No mining production or development activity took place during the quarter, leaving feasibility work and funding capacity as the immediate tests of progress.