SRK Consulting was engaged to prepare an Independent Specialist Report (ISR) for Red Hawk Mining Limited’s (Red Hawk’s) iron ore assets in Western Australia. The purpose of the ISR was to support BDO Corporate Finance Australia Pty Ltd’s Independent Expert Report commenting on the fairness and reasonableness of a proposed cash takeover bid involving Red Hawk’s mineral assets.
The Blacksmith Project – located in the Pilbara Region around 70 km northwest of Tom Price – hosts a Mineral Resource of 243.4 Mt at 59.3% Fe and an Ore Reserve of 46 Mt at 60.5% Fe. SRK’s scope also included the nearby Anvil Project under retention licence R47/21.
The ISR provided a comprehensive technical assessment and valuation, and also included recommendations for the assumptions of the discounted cash flow model. Key aspects assessed included compliance verification for JORC Code (2012) and VALMIN Code (2015) standards. The technical assessment included Mineral Resources, exploration potential, Ore Reserves, mining schedule, projected costs for the life-of-mine schedule and environmental, social and governance (ESG) compliance.
Outcomes from the ISR:
• Technical insights regarding the projected production schedule over the life-of-mine
• Valuation of residual resources and exploration potential
• Recommendations for mining costs, mining schedule, and rehabilitation strategies.
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