Lincoln Minerals (ASX:LML) has announced the company’s mineral resource estimate for its magnetite play in South Australia sits at 1.2Bt of ore at an average head grade of 25.7% Fe.
That figure comes as part of a strategic portfolio review conducted by Lincoln’s new management team and covers several different estimates conducted under the 2004 JORC regime as well as one under the 2012 regime.
Concentrate grades all sit in the high 60th percentile which the company points to as early-stage veracity of its plans to pivot into the green steel market.
Lincoln now considers its Eyre Peninsula-based project to be of major scale and “highly amendable to the production of low-carbon footprint” steel.
The company’s top dogs are hopeful that it can pivot itself favourably toward state and federal government initiatives to decarbonise Australia’s steel industry.
South Australia in particular is planning to upgrade its magnetite strategy – and Lincoln Minerals says it’s been invited to participate in that process by SA lawmakers.
The company has ben active in the region since 2007 but only acquired 100% of rights to its current project off Centrex Limited back in 2018.
Wuhan Iron and Steel Limited – two large Asian steel players – have previously inked MOUs overlooking the play under former ownership structures.
However, those deals lapsed as iron ore prices retraced into 2016, according to Lincoln. While the company has been busy on a graphite project in the same region, it now says a new management team has started to take a fresh look at its iron ore potential.
However, Lincoln can’t do it on its own – the company is looking for a partner to farm-in.
“A recent review by Lincoln’s new management team, including Chief Executive Officer Jonathon Trewartha, highlighted the potential of entering a partnership to develop this large-scale project … due to the growing acceptance of high-quality magnetite concentrate as a feedstock for ‘green’ steel production,” the company wrote on Thursday.
LML shares were up 18% to 0.6cps on Thursday in the first hour of trades.