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Andrew Todd
Macarthur Minerals has taken a major step towards production at its Lake Giles iron ore project in Western Australia, with a new approval clearing the path for bulk sampling of its hematite deposit to assess the material’s viability for future blending and shipping options.
The green light from the state’s mining department will see the company’s major shareholder and mining heavyweight, Steve Wyatt’s firm, Destec Contracting, carry out the bulk test.
The latest Programme of Work (PoW) approval allows for evaluation of the hematite component at Lake Giles, with management confident that beneficiation and blending with Gold Valley Yilgarn’s Wiluna West ore could deliver a saleable Direct Shipping Ore (DSO) product.
In a move that speaks volumes, Destec’s principal Steve Wyatt recently became a cornerstone Macarthur supporter through his holding company, backing a recent placement and acquiring a parcel of shares from another major shareholder.
‘With Gold Valley moving their Wiluna ore through the Esperance Port this may provide a future pathway for the Macarthur hematite material.’
Macarthur Minerals executive chairman Cameron McCall
The seasoned operative’s credentials in the WA mining landscape are well-known. As a co-founder and former general manager at mining behemoth Mineral Resources, Wyatt’s arrival on the register would have likely injected a wealth of know-how in steering mining ventures from the drawing board to production.
Under an arrangement consented to by Macarthur in June, Gold Valley assigned a 50 per cent interest in its rights and obligations to mine hematite to Destec. The two now hold a 50/50 interest in Gold Valley’s original agreement to mine Macarthur’s Ularring hematite deposit.
While the WA government has flagged a softer outlook for iron ore royalties, the commodity remains highly profitable, with prices holding around the US$100 per tonne mark.
Macarthur Minerals executive chairman Cameron McCall said: “The approval of this new PoW is another important step in advancing the Lake Giles Hematite Project which has been landlocked due to no access through the iron ore export port of Esperance. Now with Gold Valley moving their Wiluna iron through the Esperance Port this may provide a future pathway for the Macarthur hematite material.”
Mr McCall highlighted that Destec has its own existing workforce, mining fleet and 500-tonne-per-hour mobile crushing machines, which are ideally suited for this bulk sampling application.
The Lake Giles project sits 150 kilometres north of Kalgoorlie and contains a hematite mineral resource of 54.5 million tonnes at 47.2 per cent iron in the indicated category and a further 26 million tonnes at 45.4 per cent iron in the inferred category. It also hosts a currently stranded but colossal magnetite resource and ore reserves.
Down the track, port access will be a crucial part of Macarthur’s logistical puzzle. However, the Port of Esperance is already servicing other iron ore exporters and has spare capacity, potentially providing a viable route to market for any future Lake Giles product.
Destec’s Steve Wyatt confirmed his company has been reviewing the block models for the project and has identified key areas for the proposed bulk sampling program. He said planning is underway to mobilise mining equipment and a mobile crushing plant to the site.
Key approvals are falling into place and mining veteran David Wyatt has plenty riding on the outcome. After years in the development queue, Lake Giles is finally looking a lot closer to becoming a mine than a mining study.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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