The Hawsons Iron Ltd (ASX: HIO) share price is rising today on the back of a mineral resource upgrade.
The iron ore producer's shares are rising 6% at the time of writing, trading at 43.5 cents. For perspective, the S&P/ASX 200 Materials Index is jumping 1% today.
Let's take a look at what Hawsons Iron reported to the market.
Resource upgrade
Hawsons advised that its mineral resource estimate has jumped by 21% from 400 to 484 million tonnes. This is at the Hawsons Iron Project near Broken Hill in New South Wales.
The measured and indicated resources leapt 87% from 132 to 247 million tonnes. This includes a measured resource of 54 million tonnes and an indicated resource of 193 million tonnes.
Given the strength of this resource, Hawsons predicts it can meet its target of producing 20 million tonnes of concentrate per year.
Commenting on the news, managing director Bryan Granzien said:
This upgrade is significant because having these Mineral Resources in the higher confidence
measured and indicated categories is necessary for the BFS and finalising our project financing package.We are absolutely delighted with the outcome which now sets the scene for getting on with the next
stage of the BFS, including completion of our detailed mine design and engineering.
Granzien highlighted the new mineral resources estimate will assist in discussions with potential project financiers.
The iron ore price is up 0.97% and trading at US$104 per tonne, trading economics data shows.
Hawsons Iron share price snapshot
The Hawsons Iron share price has surged 156% in a year and 190% in the year to date.
For perspective, the Materials Index has shed nearly 16% in a year.
Hawsons has a market capitalisation of about $322 million based on the current share price.
