Macarthur explores nickel potential of Lake Giles iron project

Macarthur Minerals has conducted a comprehensive review of the nickel prospectivity at its Lake Giles tenements to add value to its magnetite iron project in a bid to attract potential mining partners.

According to the company’s December quarterly activities report, Macarthur has identified and invited potential strategic partners to complete due diligence on the Lake Giles iron project around 250km north-west of Kalgoorlie.

The operation houses a massive 237 million tonnes at beneficiated grades of 66.1 per cent iron and has an enviable 25 year calculated mine life that has been projected using an achievable annual production figure of three million tonnes of dry, high-grade magnetite.

Macarthur has previously identified the nickel sulphide potential of the site due to its geological similarity to the Lake Johnson greenstone belt that was host to the Maggie Hays nickel mine.

The Lake Giles tenements were briefly looked at for nickel by exploration companies between 1968 and 1972 during the nickel boom and for gold between 1974 to 1978. Macarthur originally acquired the project for nickel exploration in 2000. However, in 2005 a renewed global interest in iron ore encouraged the company to switch focus to hematite and magnetite iron resource definitions and project development.

Lake Giles is connected to large existing regional rail and port infrastructure by a 93km stretch of sealed haul road giving it the ability to cost effectively deliver its premium 66 per cent concentrate to customers worldwide.

An offtake agreement has been signed with global mining giant Glencore for approximately four million tonnes per annum for the first 10 years with an option to extend for another 10.

Under the agreement, Glencore is responsible for marketing, shipping, delivery and insurance. Additionally, the company has agreed to release up to 70 per cent of the off-take volume if Macarthur secures project financing from a strategic industry investor.

With a high-grade magnetite product that has low impurities and can aid the global shift towards net-zero emissions, Macarthur is well-positioned to benefit from this shift and support Australia’s move towards a cleaner steel future.

The proposed mining method at Lake Giles is open pit using traditional load and haul operations of the measured and indicated resources at the Moonshine and Moonshine North deposits. The planned open pit operation boasts an enviably low life of mine strip ratio sitting at a 2.6 to 1. The pre strip stage is expected to last for approximately nine months.

The company plans to update the market on the nickel prospectivity of its tenements by the end of the March quarter. If Macarthur can successfully add nickel to the company’s already impressive magnetite resources at Lake Giles, it could find itself with a number of prospective mining partners knocking on the door.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au