Cadence Minerals (KDNC ) has noted an announcement from Macarthur Minerals this morning which states that progress continues at the Lake Giles Iron Project in Australia. 

Macarthur Minerals, an Australian mining exploration firm of which Cadence holds around 1% of the issued equity interest in, said progress is ‘continuing to build pace’ in regard to the feasibility study that is underway at the high-grade magnetite Lake Giles project. 

The progress report follows a site visit to the Moonshine and Moonshine North magnetite pit shells at the Lake Giles which was overseen last week by leading Stantec consultants.  

Stantec, an engineering services firm, are advising the firm on the design of the process flow sheet for the magnetite process plant, as well as on the non-process infrastructure requirements for the Company's planned high grade magnetite project in Western Australia. 

The visit to the project, located around 115km west of Menzies in Western Australia, was conducted under guidance by Group representatives and took in ‘all relevant aspects of the Lake Giles Iron Project that will be covered by the Feasibility Study at the proposed mine site.’ 

The visit covered other areas required for developing key non-process infrastructure, including transport logistics infrastructure such as the proposed haul road and rail siding. 

Macarthur Minerals highlighted that previously announced geotechnical diamond core drill programme underway at Moonshine and Moonshine North is “continuing to progress.” 

The Group said it will, alongside its study consultants, shortly be undertaking a separate site visit to the Port of Esperance to support the engineering design works for on-port infrastructure that will also inform capital and operating cost outputs for the feasibility study. 

Andrew Bruton, Chief Executive Officer of Macarthur Minerals hailed last week’s site visit as “another important milestone” in the development of the feasibility study for the Company. 

He said the Company believes that the foundational work required to underpin the delivery of the study “will position Macarthur to advance with the execution phase of the project.” 

To deliver truly successful outcomes for future mining operations, Bruton said engineering and design works must be “married with reality” while the team must “experience and understand the landscape and environment within which the project will be developed.  

Speaking on the work at Lake Giles, he added: “Properly examining and experiencing the terrain and conditions will help underpin realistic capital and operating cost assumptions and outputs for the Feasibility Study. We are very encouraged by all the work completed to date.  

The Study continues to progress within budget and on schedule, and we look forward to updating the market with the final results shortly. Walk with us and discover something big." 

Reasons to  KDNC

In September 2020, DEV, Cadence and Indo Sino Pty ("the Investors") agreed in principle to the settlement terms proposed by the secured bank creditors ("Bank Creditors").     

The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of Cadence's remaining major precondition to make its initial 20% investment in Amapa. On completion of the conditions and the release of the Cadence escrow monies, it will become a 20% shareholder in Amapa via its JV company, which will own 99.9% of DEV.     

Amapá – 30% (once final agreement with bank creditors has been completed) 

Candece plans to rehabilitate Amapá, including commissioning the studies required of bank finance, shipping of the iron ore from the stockpile and the restarting of full operations.     

The historic mine plan would mean that Amapá would produce at steady-state production an estimated 4.4 Mt of 65% iron and 0.9 Mt of 62% iron per annum for approximately 14 years.     

Cinovec – 16%     

Cadence holds around 12% of the equity in European Metals, which, through its subsidiary, Geomet, controls the exploration licences awarded for the Czeach Cinovec Lithium Project.     

Cinovec, which is the largest hard rock lithium deposit in Europe, is strategically located to produce lithium for Europe with the goal of contributing to a sustainable supply chain for a world leading centre for electric vehicle development and manufacture in Europe.     

Diego Pavia, CEO of EIT InnoEnergy, said he views Cinovec as “critical” to the development of Europe's energy storage industry and in meeting the EU's climate goals of electrification of mobility and large-scale development of renewable energy storage.     

Last week, the ongoing nineteen-hole resource drilling programme at the Cinovec Project returned strong drilling results. Cadence’s Chief Executive, Kiran Morzaria told investors that the encouraging results ‘serve to highlight the overall quality of the Cinovec project.’      

Yangibana – 30%     

Last year, Cadence unveiled ‘outstanding’ rare earth oxide grades in a report which highlighted positive drilling results at the Yangibana rare earth project in Australia, exceeding its expectations for its planned 20,000 metre 2020 exploration drill program.     

Cadence, which owns 30% of three mining leases and six exploration licences which form part of the Yangibana Rare Earth Deposit, expects to advance the programme until Q420.     

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