Macarthur Minerals: Lake Giles Iron Ore Project Update
TSX VENTURE: MMS
VANCOUVER, British Columbia, Aug. 22, 2019 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS, OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to provide an update to Shareholders outlining recent activities advancing the Lake Giles Iron Ore Project in the Yilgarn Region of Western Australia.
Significant advancement has been made in the following areas:
- Diamond and RC drilling infill programme has commenced to support a resource category upgrade and obtain samples for metallurgical test work
- Development of the Commercial and Technical capabilities in the Company to deliver the completion of a Bankable Feasibility Study
- Application for in-principle advice seeking consideration from the Australian Stock Exchange (“ASX”) for a proposed dual listing of the Company
- Discussions with commercial partners for power and water supply, mining services, road and rail haulage, port infrastructure development and process plant design and construction
Macarthur will release more detailed information to the market on these key project developments as they are finalized.
Mr Cameron McCall, Executive Chairman of Macarthur Minerals commented:
“The first half of 2019 has been very rewarding for the Company with the closure of an Offtake agreement with Glencore, rail haulage negotiations with Aurizon, successful closure of capital raising to fund the delivery of a Bankable Feasibility Study; the positive result of the Lake Giles Iron Ore Project in the June 2019 Technical Report with improved capital and operating costs of the project. During this period Macarthur also repositioned its non-iron ore assets for gold, lithium and copper in the Pilbara region of Western Australia into an ‘earn-in Agreement’ with an active explorer Fe Limited, allowing Macarthur to concentrate its full focus on the iron ore projects.
Some shareholders have contacted me about the recent decline in the share price on the TSX-V. Let me assure you there are no Project or Company issues contributing to this decline. The global sentiments around China/USA relations; US economic slowdown; volatility across major stock exchanges and the recent pullback of the iron ore spot prices to US $95/tonne, all have in part, contributed to this share price decline.
The Lake Giles Iron Project, with its stated costs for magnetite production of US$37.43/tonne still provides a robust margin today for the Company’s target 3Mtpa product of 65% Fe magnetite concentrate.
Moving forward, the Board is seeking ‘in principle’ consideration from the Australian Stock Exchange for a dual listing of Macarthur Minerals. Australia is seen as a logical exchange given investor and institution familiarity in mining, specifically iron ore and the geographic proximity to its Lake Giles Iron Project. Australia and specifically Western Australia, is the largest iron ore supplier in the world, accounting for 39% of global supply in 2018 exporting over 800 million tonnes per annum.
Over the course of the coming months, Macarthur will have a solid workload in supporting the completion of a Feasibility Study, key route to market and mining tasks and building a commercial and technical team to support the development of the project.
Our non-iron asset partners, FEL are also undertaking an active program in exploration for the gold, lithium and copper assets in the Pilbara following a successful initial reconnaissance trip which identified areas of significant prospectivity.”1
ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS, OTCQB: MMSDF)
Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Ore Project includes the 80 million tonne Ularring hematite resource (approved for development) and the 710 million tonne Moonshine magnetite resource. Macarthur has prominent (~1,281 square kilometer tenement area) gold, lithium and nickel exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.
Mr Ian S Cooper, B.Sc., A.R.S.M., F.G.S. FAusIMM, a Fellow of the Australasian Institute of Mining and Metallurgy (membership number 107348), is a consultant of Macarthur and is a Qualified Person as defined in NI 43-101. Mr Cooper has reviewed and approved the technical information contained in this news release.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
Cameron McCall, Executive Chairman
Joe Phillips, CEO and Director
Telephone: +61 448899247
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the timely receipt of required approvals, the reliability of information, including historical mineral resource or mineral reserve estimates, prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the project, unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore, uncertainty in successfully returning the project into full operation, and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
1 Press release filed August 6, 2019, titled “Macarthur’s Joint Venture Partner Fe Limited identifies areas of Prospectivity for Further Exploration in the Pilbara”