Northam Iron holds a series of magnetite deposits in the Northam area, 100km east of Perth. The deposits are shown as blue dots on the map below. The project already has substantial resources, for example the Yerecoin project hosts inferred resources of 404Mt at a head grade of 28.3% Fe. The total exploration target is well over 1Bt.

NI Tenure

Plan showing tenure, magnetite deposits and various towns & cities

Infrastructure.

The project is superbly located in terms of infrastructure. There are many roads and access tracks and several rail lines cross the project area. The topography is subdued, and the land is mostly cleared for wheat farming. Water is widely available, as is grid power.

There is rail capacity for a proposed 5mtpa operation and capacity for bulk exports from the port of Kwinana.

Northam_sat

Satellite image showing the open, gently rolling terrain


The Magnetite

What sets Northam Iron’s magnetite apart from all other Australian magnetite projects is its crystal size. The parent banded iron formation was once similar to those in the Pilbara of Western Australia. However, after deep burial the rocks were recrystallised at high metamorphic grade. This separated the magnetite from silicates with which it had been intimately combined.  Now the magnetite occurs as large crystals in either clumps or bands.

The significance of the coarse crystals is that it makes it much easier, and cheaper, to produce an economic concentrate.

The closest parallel internationally are the coarse magnetite deposits of Mauritania. The government owned Societe Nationale Industrielle et Miniere (“SNIM”) has been successfully producing high grade magnetite concentrates for 50 years.

This comparison is supported by two geologists with extensive iron ore experience in Mauritania, Richard Harmsworth and Schulk van der Merwe. Both consider that the Northam Iron magnetite is comparable to that being processed in Mauritania. Photos and more here.

NI_magn_core

Processing

While it is certain that a saleable magnetite concentrate (say 65-68% Fe) can be produced, costs to do so are not yet known. These data should be on hand in a couple of months, once initial metallurgical test results are available to feed into the scoping study now underway.

The company plans a combined dry and then wet processing circuit, similar to that used in Mauritania. This is typically much lower cost, both capital and operating, than full wet processing used by other Australian magnetite producers.

Metallurgical testwork by a previous owner of one of Northam Irons’ project, Ragged Rocks, returned excellent results. A coarse grind size of 200 microns (a micron is one millionth of a metre) returned a concentrate grading 64.3% iron. A grind at 100 microns returned 68.0% iron. All grind sizes returned mass yields of around 35% with low contaminants.

Management

The board is led by Chairman Michael Addison, a well known Sydney-based businessman with a background in water engineering, investment banking and executive management. Mr Jim Hickey is a Perth-based entrepreneur and one of the founders of Northam Iron. Ms Louise Hampel is an experienced metallurgist and was the first to realise the potential of the magnetite in the Northam area. Mr Kevin Shultz, also a founder, provides geological services to the company. Mr Justin Clyne is a lawyer and provides  corporate advisory and company secretarial services to a number of companies.

The company is still building its operational team but has already engaged some very experienced and well-credentialed staff.

Finance

The company and its advisor, Wentworth Global Capital Partners, have done an excellent job of financing project development, raising approximately $3M. The funds raised are being used to build up the management team, drilling, metallurgical testwork and feasibility studies.

Conclusion

Northam Iron has the potential to produce the highest-grade iron ore in Australia. This will fetch a significant premium to the standard 62% Fe. Read about iron ore pricing here.

With low costs and excellent infrastructure Northam Iron is poised to potentially become a very profitable producer.

 

 

 

 

 

 

 

 

 

 

21 June 2018 Companies