Gold Valley is a West Perth-based miner privately-owned by Chinese-born businessman Yuzheng Xie and has been making itself known in the WA iron ore sector recently, locking in two iron ore projects in the past year.
Macarthurโs management says it is considering the prospect of bringing in a partner to help develop its massive 100 per cent-owned magnetite deposit.
The company believes its Moonshine project compares favourably with several other magnetite projects around the world. It cites comparisons with Champion Ironโs magnetite project in Canada, based on a completed feasibility study on Moonshine from 2022 relative to Championโs 2024 pre-feasibility.
Management says Moonshine has slightly higher in-situ grades of 28.2 โ 30.7 per cent iron to Championโs 28.6 per cent and processed concentrate grades achieving 66.1 per cent compared to 65.2 per cent for Championโs material.
Capital expenditure of US$569 million (A$917 million) would be required to develop the operation, with an expected mine life of 25 years.
Whilst considerably cheaper than Champion Ironโs estimate of US$2.062 billion (A$3.323 billion) needed to fully develop its Kami project in Newfoundland and Labrador near Quebecโs eastern border, Moonshine would be targeting annual production of 3 million tonnes compared to Championโs larger nine million tonne per annum operation.
Macarthur plans to continue to focus on its large magnetite project to produce the type of green ore that will be required in the coming decades to reduce emissions from highly polluting smelters.
With money in the bag, a cashed-up partner to take it forward and a clear pathway to port, Macarthur would seem to have its ducks well and truly lined up.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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