Macarthur Minerals Ltd (ASX:MIO) (CVE:MMS) has been up to 20% higher after increasing and upgrading the magnetite resource estimate for Moonshine deposits at its Lake Giles Iron Project in Western Australia.
This resource upgrade, which follows extensive infill drilling, has delivered sufficient resources in the appropriate categories to underpin the current Lake Giles Iron Project feasibility study.
The updated mineral resource incorporates the recent drill assays and has resulted in an increase in the size of the Moonshine mineral resources including resource category upgrades to now include measured and indicated resources.
Resource estimates include:
- Measured resources of 53.9 million tonnes at 30.8% iron head grade and 66.0% iron DTR concentrate grade;
- Indicated resources of 218.7 million tonnes at 27.5% iron head grade and 66.1% iron DTR concentrate grade; and
- Inferred resources of 997 million tonnes at 28.4% iron head grade and 64.6% iron DTR concentrate grade.
Previous resource estimates presented to the market between 2009 and 2019 consisted entirely of inferred resources with the new estimates compared to the previous inferred resource of 710 million tonnes.
Investors have responded positively with the company's shares being as much as 20% higher to $A0.30 intra-day.
Macarthur president and executive chairman Cameron McCall said: “The completion of the updated mineral resource estimate for Macarthur’s magnetite deposits at its Lake Giles Iron Project is a major milestone for the company as it progresses its feasibility study.
“The updated estimate includes an increase in the size of the Moonshine and Moonshine North mineral resource, with category upgrades including measured and indicated resources."
With a measured mineral resource totalling 53.9 million tonnes and indicated mineral resources of 218.7 million tonnes, Macarthur has sufficient resources in the appropriate categories to progress its feasibility study.
Longitudinal section of Moonshine (west) domain, showing resource classification (green=measured, cyan=indicated, yellow=inferred, red=unclassified) and drill hole intercepts.
Commercial track access agreement
The resource upgrade follows the recently announced proposal for development of a commercial track access agreement received from Arc Infrastructure and the announcement of plans to develop haul road and rail siding infrastructure near Lake Giles.
McCall said: “Recent announcements concerning the company’s applications to develop haul road and rail siding infrastructure near Lake Giles and the announcement that the company has received a proposal for development of a commercial track access agreement from Arc Infrastructure means that the company is edging closer than ever to making this project real for shareholders.
“The company’s board and management are singularly focused on progressing through the key gateways to deliver the project to maximise the opportunities presented in the current commodity cycle.”
“Emerging iron ore producer”
McCall added: “With our focus now on the many more successes which need to follow, we have committed to a pathway of responsible, respectful and sustainable development.
“These are the principles and points of difference upon which the company will focus as an emerging Australian iron ore producer.
“This is a great outcome for Macarthur and its shareholders.”