Hawsons Iron Ltd (ASX:HIO) welcomes the results of a pilot test work program that validates and de-risks the new phase 1 mineral processing design developed by global engineering firm Stantec for its flagship namesake project near Broken Hill in Far West New South Wales.
The test work was undertaken as part of a strategic review to strengthen the business case for developing the Hawsons Iron Project.
Stantec's modified design has streamlined processing steps, minimised power and water consumption, eliminated the need for grinding media, downsized downstream equipment and improved tailings management.
Improving processes
The outcome of the program has demonstrated that the new design is not only effective but also significantly more efficient than anticipated, with comminution energy usage registering up to 30% lower than Stantec's initial theoretical estimates.
“This pilot test work program has successfully de-risked Stantec’s proposed phase 1 flowsheet design as a viable technical solution which can now be progressed to support a modified BFS for an 11 million tonnes per annum project,” Hawsons executive chairman Bryan Granzien said.
“Importantly, this proof-of-concept program has also provided valuable data to enable Stantec to improve their flowsheets to potentially reduce capital and operating costs further and revise the process required to generate potential secondary waste stream ore-sand products.”
Investors have also welcomed the results with HIO shares as much as 18.2% higher to $0.039.
Aiming to reduce costs
Beyond the energy savings, the program has yielded critical data that will enable Stantec to further enhance the phase 1 flowsheet, subject to undertaking recommended follow-up pilot test work programs to fine-tune the more traditional phase 2 magnetite recovery circuit.
These enhancements could potentially reduce capital and operating costs while refining the process for generating valuable secondary waste stream ore-sand products.
“These additional pilot test work programs to support further refinement of the final flowsheet designs can be undertaken as part of an ongoing scope of work once activity on a modified BFS gets underway,” Granzien said.
Seeking partners
With the test work completed, Hawsons will finalise a comprehensive project investor information memorandum next month to support discussions with potential strategic partners keen to fund the project’s modified bankable feasibility study (BFS).
The modified BFS could be completed within 12 months after securing the required funding.
Hawsons Iron Project is 60 kilometres southwest of Broken Hill in the emerging Braemar Iron Province.
It is potentially capable of producing the world’s highest-grade iron product (70% iron), making it among the world’s leading undeveloped high-quality iron ore concentrate and pellet feed projects.