Macarthur Accelerates Lake Giles Mine Planning

RNS Number : 9408Z

Cadence Minerals PLC

26 May 2021

 

Cadence Minerals Plc

("Cadence Minerals", "Cadence")

Macarthur Minerals (TSX-V: MMS) (ASX: MIO) Targets Acceleration of Lake Giles DSO Campaign With Mine Planning Work to Commence at Ularring.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (ASX: MIO) (the "Company" or "Macarthur") has announced that it is advancing mine planning work to support intended hematite mining operations at Lake Giles in Western Australia.

The Company has commenced work to prepare a mine plan for a direct shipment ore (DSO) product under a mining campaign which will initially target the Snark and Drabble Downs deposits of the Lake Giles Ularring Hematite Project.

In 2012 the Company completed a Pre-Feasibility Study (PFS) of the Ularring Hematite Project ("Project") that included beneficiation of low-grade iron mineralisation. Given the current strength of the global iron ore market, the Company considers there is scope for development of a simple DSO operation with mobile crushing and screening equipment. The Company's mine planning work will be premised on this basis, targeting a low capital, rapid development scenario.

This low-cost approach does not diminish the potential for a beneficiated sinter fines product as envisaged in the original 2012 PFS.

The Snark and Drabble Downs deposits are located in close proximity to the Evanston-Menzies road that is currently being used for ore haulage by local gold mining operators. This road provides direct access to sealed highways to both Geraldton and Esperance ports as well as open access rail networks.

The Company has engaged with road haulage contractors and has identified rail and export options utilising existing regional infrastructure. Additionally, the Company has made applications for miscellaneous licences to support the development of a mining camp and mining services infrastructure and is in discussions with neighbouring tenement holders for access to water bores.

Highlights:

· NI 43-101 Technical Report filed October 1, 2012, titled "NI 43-101 Technical Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia."

· The detailed mine planning work focuses on the hematite deposits located at the Snark and Drabble Downs prospects where direct shipment ore (DSO) product has been defined. The work to be undertaken will support regulatory approval of a Mining Proposal and tendering of contract mining services, and will include:

o  project optimization;

o  mine design and layout;

o  mine scheduling of DSO;

o  mining cost estimation; and

o  implementation planning.

The mine planning and associated geotechnical assessment work is expected to be completed by the end of June, and Macarthur intends to lodge a mining proposal with the Department of Mines, Industry Regulation and Safety (DMIRS) during Q3 this year.

The Company has identified options for an export pathway to support planned DSO mining operations and is aiming to complete arrangements for its preferred product transport and export solution shortly.

Following approval of the mine plan by DMIRS and subject to securing remaining project development approvals and closing project financing, the Company intends to target commencement of DSO production at Ularring at the earliest available opportunity.

Andrew Bruton, Chief Executive Officer of Macarthur Minerals commented: "Iron ore is experiencing one of the largest price surges in decades, and our shareholders have been eagerly anticipating the Company's advancement of early hematite mining operations at Ularring. The current market has presented both opportunities and challenges over the last several months as the Company navigates an increase in competitive demand for transport infrastructure and port access. Macarthur's Management team has risen to the challenge and has worked to advance a solution which aims to take advantage of the current strength in iron ore prices by advancing early mining operations.

Early mining operations will also support the Company's aim of commencing high grade magnetite mining operations at its Moonshine and Moonshine North deposits following the completion of the current Feasibility Study process. We are pleased to finally provide the market with the details of the next step towards this much anticipated corporate milestone being completed, and I look forward to keeping investors informed of the exciting developments along the pathway towards achieving our first shipment of iron ore. Further announcements on progress will follow in the coming weeks."

The full announcement can be viewed here: https://finance.yahoo.com/news/macarthur-targets-acceleration-lake-giles-120000075.html

Cadence Minerals Holding in Macarthur

Cadence holds approximately 1% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

This news release is not for distribution to United States Services or for Dissemination in the United States. 

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For further information: Cadence Minerals plc                                                      [phone] Andrew Suckling Kiran Morzaria WH Ireland Limited (NOMAD & Broker)   [phone] James Joyce James Sinclair-Ford Novum Securities Limited (Joint Broker)   [phone] Jon Belliss

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding Cadence Minerals Plc's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements.

 

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