JV partners LCY and HAW have cemented a deal with a subsidiary of Gina Rinehart’s Hancock Prospecting, which will shell out an initial $9m to earn into the ‘Mt Bevan’ iron ore project in WA.

Hancock will make an initial investment of $9m to earn a 30% interest in Mt Bevan, with $8m cash being paid to Legacy and Hawthorn in proportion to their interest in the project (Legacy $4.8m and Hawthorn $3.2m).

The remaining $1m will be working capital.

Hancock will hold a 30% interest, LCY will hold 42% and HAW will hold 28% upon completion of the initial investment.

Hancock can earn an additional 21% by funding the completion of a pre-feasibility study (PFS), a detailed look at whether the project is economic to build.

Mt Bevan hosts a 1,170 million tonne magnetite resource @ 34.9% iron, 250km north of Kalgoorlie in WA.

While magnetite iron ore resources are lower grade than hematite in the ground, they can be concentrated into a higher-grade product.

Premiums for high-grade iron ore are increasing, partly because they generate steel with more efficiency.

That could only increase in the future with new tech, like green steel and hydrogen based direct reduced iron, expected to be reliant on higher-grade ores.

LCY ($185m market cap) and HAW ($41m market cap) are up 136% and 137% respectively since the deal was first unveiled November last year.

CARBINE RESOURCES (ASX:CRB)
Maiden drilling shows CRB’s ‘Muchea West’ project near Perth in WA has potential to host a substantial, high grade, low impurity silica sand deposit.

“This is not a matter of discovering sufficient material for a commercial operation, but more selecting the first development location and defining the product within that location,” managing director Peter Batten said today.

Strong words.

New results like 20m at 99.69% SiO2, 450 ppm Fe2O3 and 313 ppm Al2O3 from 1m confirm results from previous drilling in the high grade ‘Eastern Area’.

While most demand comes from the booming construction sector, high-quality silica sand can also be used in the glass, electric vehicle, and big battery sectors.

The potential final processed grade at Muchea West is significant, as it meets all the specifications for flat and container glass markets and for foundry glass at the top end of silica sand consumption market “and the upper price ranges for these products”.

Higher grade = more $.

“Carbine believes the quality of the Muchea West Silica Sand Project is exceptional and these results confirm that,” Batten says.

“The overall size and quality of the Muchea sand dune system ranks highly in the silica sand market.”

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