Mt Bevan Magnetite Joint Venture with Hancock

(Hawthorn Resources 28% - Hancock Prospecting Magnetite Holdings 30% - Legacy Iron Ore Limited 42% )


Hancock Prospecting and their iron ore mining group Atlas Mining, have farmed into the Mt Bevan project with Hawthorn Resources and Legacy Iron Ore Limited (ASX :LCY). The project is located 250 kms north of Kalgoorlie and 100 kms west of Leonora in the central Yilgarn of Western Australia.

Hancock acquired an initial 30% equity interest in the Mt Bevan JV by a cash payment of $8million: $3.2 million for Hawthorn, $4.8 million to Legacy, and payment of a further $1 million into the JV’s bank account for working capital.

Hancock is sole funding the first two years of a Pre-Feasibility Study (PFS) which commenced on 14 April 2022 with the key objectives of the Mt Bevan PFS agreed upon by the JV . On completion of the PFS, the JV interests of the respective partners will be Hancock 51%, Legacy 29.4% and Hawthorn 19.6%. Full details of this major strategic development for Hawthorn are contained in our ASX announcements of November 15, 2021 and May 3, 2022.

Following the discovery of lithium-tantalum pegmatites in the Mt Ida area (by Red Dirt Metals), the JV is conducting exploration of the Eastern and Northern areas of the Mt Bevan lease, where pegmatite dykes are known to occur. Attention is being directed at the extensive pegmatite development in the northern lease area, associated with the Mt Alexander granite intrusion.

Granite and pegmatite have been intersected in the St George mafic dyke complex, diamond drilling of the Ni Cu Cathedrals zone. This area adjoins the Mt Bevan lease. It is covered by sheet wash and drilling will be required to test this area. Scattered surface rubble of pegmatite and vein quartz points to shallow buried pegmatite. This area will be investigated in the June quarter by Legacy-Hawthorn under the exiting JV, giving title to any discoveries that the current JV may find.

Other Minerals, such as lithium and nickel–copper are covered under a separate agreement. Hancock will allow exploration of other minerals, such as lithium and nickel-copper to proceed under this separate agreement. Noting that iron ore mining and development always have priority.

At this stage, the majority of our Ni Cu and Li targets are quite far away from the existing magnetite resource. Details of this exploration are provided in the December quarterly reports of both Legacy and Hawthorn.