Cadence Minerals (AIM:KDNC) said Macarthur Minerals continues to progress towards a route to market for its flagship Moonshine magnetite deposits at the Lake Giles Iron Project.
Cadence holds around 2.7% interest in Macarthur which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia.
Macarthur is working alongside RCR Mining Technologies ("RCR MT") on the project which is targeting a +65% iron beneficiated magnetite concentrate to provide a rail transport and rail unloading solution of magnetite concentrate at the Port of Esperance located near Perth.
RCR MT will examine the potential to use cutting-edge rail unloading technology that has been successfully used in Scandinavian magnetite operations for several years, it said.
The group will design an engineering concept using 'Helix Dumper' unloading system and Helix Dumper wagons owned and developed by Kiruna Wagon in Sweden which has previously been utilised in transporting magnetite concentrate from Sweden to Norway.
Shares in Cadence Minerals have traded strongly recently, from 6.25p at the beginning of May to opening at 10p following this morning’s statement.
The Helix Dumper system was developed specifically for magnetite concentrates to provide efficient discharge of sticky product at rates up to 25,000 tonnes per hour and can potentially optimise productivity with several advantages over conventional rotary car dumpers.
These advantages include increasing the overall gross payload, reduced operating costs and potentially lowering the capital cost.
Macarthur is now working with Southern Ports Authority to potentially develop this system at the Port of Esperance and negotiate developing a storage shed for its magnetite concentrate.
If constructed, the system will be capable of handling tonnages well in excess of Macarthur's immediate requirements for stage 1 of its Lake Giles Iron Project, providing the potential for increased trade through Esperance, subject to capacity elsewhere within the Port.
“This is another positive step forward for Macarthur's Lake Giles Iron Project and demonstrates the tenacity with which Management is progressing this essential component of project delivery,” said Macarthur’s President and Executive Chairman, Cameron McCall.
He added, “With this new cutting-edge rail unloading technology having the potential to contribute to increased trade through Esperance Port, this can only be good for future economic growth and job security in the region.
Macarthur welcomes the opportunity to be part of that story and to contribute a positive legacy for the State of Western Australia and workers in the Goldfields region."
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