FEASIBILITY STUDY UPDATE

Macarthur could ‘smash the carbon ball out of the park’ with renewable energy penetration at Lake Giles

VANCOUVER, British Columbia, Sept. 20, 2021 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF) (the Company or Macarthur) is pleased to announce that outputs from analysis undertaken by VECKTA on an optimised power configuration solution for the Company’s high grade magnetite Lake Giles Iron Project has demonstrated potential for Macarthur to achieve renewable energy penetration for its stationary energy requirements from the commencement of operations at levels from 40% to as high as 90%. 

If supported by the balance of the current Feasibility Study, then this could establish Macarthur as one of the few mining companies in Australia to commence operations with such a material percentage of decarbonized energy inputs for its stationary consumption requirements.  At 90% penetration, Macarthur’s Lake Giles Iron Project could lead the Australian mining sector.

Highlights       

• Macarthur recently announced that it had appointed VECKTA to provide critical inputs for the design of an onsite energy system as part of the Feasibility Study for the Lake Giles Iron Project (see 1 September 2021 announcement here).
   
• VECKTA, powered by XENDEE has undertaken a techno-economic analysis of viable energy solutions to identify an optimized mix of conventional and renewable energy at site. The analysis will enable Macarthur to strike the optimal balance of reliable power for mineral processing operations, minimizing the levelised cost of energy (LCOE), and the lowest possible carbon footprint to support operations.
   
• The results of VECKTA’s analysis indicate that the lowest LCOE for the Lake Giles Iron Project can be achieved through renewable energy penetration of around 90% for the project’s stationary energy demand, using a combination of solar and wind resources. Remaining load would be served by natural gas generators.  The analysis has indicated that the comparative reduction in LCOE when compared with using diesel or natural gas as the primary fuel source is material.
   
• Macarthur is also considering a solar and gas hybrid solution with a renewables content exceeding 40%, to account for potential constraints (for example, restrictions owing to additional land tenure requirements) on the level of deployable wind generation.
   
• Macarthur will target a ‘no upfront capital’ solution to deploy the Lake Giles power station and will shortly commence preliminary discussions with interested parties via VECKTA’s capital market platform. The contract structure is expected to deliver energy to the project at a competitive project opex (c/kWh) over the life of the mine.