- Red Hawk has inked a haulage deal with MGM Bulk for Blacksmith
- The WA-based iron ore play is to now go through prefeas and definitive studies
- MGM will work with Red Hawk through the process to optimise logistics strategy
- RHK last traded at 64.2cps
Red Hawk (ASX:RHK) ore will be travelling to and fro Port Hedland’s Utah Point export terminal on the back of MGM Bulk trucks thanks to a haulage deal locking-in logistics for the company’s Blacksmith iron ore play in WA.
The haulage handshake comes ahead of a pending prefeas (PFS) and definitive (DFS) study for Blacksmith with the logistics strategy to face ongoing optimisation, according to Red Hawk.
Once those studies are done and dusted, assuming all cards in order, MGM has the right to enter into an agreement that replicates the terms “contained in the DFS.”
MGM is ultimately tasked with providing a fleet of no less than 150 trucks, plus drivers, plus other equipment required for loading.
MGM chief Michael Giacci described the deal as a point of ‘immense’ pride.
This mood was echoed by Red Hawk MD Steven Michael.
“MGM Bulk’s operations in the Pilbara, centred around delivering iron ore into the Utah Point, are second to none,” Michael said.
“Our PFS team is working closely with MGM Bulk’s commercial and operations team to deliver operating and capital cost estimates with a high degree of certainty, which can easily be translated into an operational haulage contract.”
Red Hawk is the 100% owner of Blacksmith some 70km NW of TOm Price in lease M47/1451.
The DSO play is one ripe for ‘right sizing,’ per Red Hawk’s language on its landing page for the project, which is also one that’s seen a few different iterations.
Red Hawk notes it’s the beneficiary of federal approvals already granted where 20,000 metres of drilling has already been conducted – now bringing them to prefeas.
A scoping study previously inked an average grade of 60.5% Fe, A$150M capex to get it running and a mine life of 20.1Y.
RHK shares last traded at 64.2cps.