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Carpentaria shifts focus to project development

3rd July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior explorer Carpentaria Exploration was setting its cap to transition into production, identifying its flagship Hawsons iron project, in New South Wales, as the first development target.

“Grassroots exploration and the development of an advanced iron-ore project like Hawsons attract different investment portfolios and timeframes, and may compete for company resources,” said Carpentaria MD Quentin Hill on the company’s decision to focus on development, rather than exploration.

“We believe the Hawsons iron project is the cornerstone of a long-lasting, low-cost premium iron business with significant upside for Carpentaria’s shareholders,” he added.

Hill said that the transition from explorer to developer was a significant and exciting step for the company, with the company aiming to maintain its strong financial position in the medium term. Furthermore, the streamlining of its focus and targeted cost reductions would allow for a 50% decrease in expenditure over the previous financial year, Hill added.

Carpentaria owns 60% of the Hawsons project, and is in joint venture with Pure Metals. The partners are currently conducting a bankable feasibility study on the project, based on a start-up operation of ten-million tonnes a year.

The project is currently underpinned by an inferred and indicated resource of 1.8-billion tonnes, containing some 263-million tonnes of concentrate grading 69.7% iron.

“While the current market conditions are volatile, the medium- to long-term iron demand outlook, particularly for a high-grade, ultra low impurities product is very good,” Carpentaria chairperson Neil Williams said.

He added that the company’s decision to develop the project demonstrated Carpentaria’s confidence in the value of the asset.

Edited by Creamer Media Reporter

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