Red Hawk Mining Gains Partner To Haul DSO Iron From Its Blacksmith Project In The Pilbara

Red Hawk Mining Ltd (ASX: RHK) has moved a step closer to unlocking riches from future iron ore production at its Blacksmith Project in the Pilbara region of Western Australia.

It signed an agreement with MGM Bulk Pty Ltd for the haulage of iron ore from Blacksmith to the Utah Point Bulk Handling Facility in Port Hedland.

Blacksmith has been explored extensively with over 200,000 metres of drilling to date.

Red Hawk has the largest Direct Shipping Ore (DSO) resource of any ASX-listed junior iron ore company with 174 million tonnes grading 60.0% (Fe) iron.

The Blacksmith deposit is dotted by many major iron ore projects and key infrastructure surrounding the project.

Nearby projects include Mt Tom Price, Brockman, Solomon, and Eliwana.

Details

The agreement provides for Red Hawk and MGM Bulk to work through the Pre-Feasibility Study and Definitive Feasibility Study phases to develop and optimise a transport and logistics strategy.

This will focus on maximising productivity and reducing unit operating costs. A recent Scoping Study highlighted attractive project economics to develop Blacksmith.

Scoping Study highlights

  • Pre-tax NPV of $356M;
  • IRR of 35% with a mine life of over 20 years;
  • Low upfront capital costs of $150M including a 30-35% contingency;
  • Initial production of 1.2Mt in Year 1, ramping up to 3Mtpa from Year 3 onwards;
  • Iron ore products are to be transported by public roads to Port Hedland and exported via the Utah Point bulk handling facility.

One Step Closer

Red Hawk is one step closer to becoming a long-term supplier of 3 million tonnes per annum of 60.5% iron (DSO) iron ore over 20 years.

At the helm of Red Hawk is experienced mining executive Steven Michael, who previously served as managing director of Vimy Resources Ltd.

Vimy successfully merged in a $658 million deal with Deep Yellow Ltd.

Chairing the company is the Hon. Cheryl Edwardes AM, a solicitor by profession and a former Minister in the Court Government of Western Australia.

Red Hawk raised $5.7 million in an entitlement offer, providing funding for the Blacksmith Pre-Feasibility Study which has now begun.

 

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