The graphite,magnetite and uranium explorer’s stock touched 0.7c during intraday trading after a previous close of 0.55c,with more than 12.5 million shares changing hands – representing its biggest trading day since January.
Drilling at Lincoln Minerals’ Green Iron project has delivered assays up to 33.63 per cent iron.Supplied
Management says its recent portfolio review validated the magnetite resource and highlighted the potential for entering a partnership to develop its 100 per cent-owned Green Iron project. It believes current industry trends and increases in demand for high-quality magnetite concentrates to support steel industry decarbonisation suggest that interest for a project of Green Iron’s scale and product quality could be renewed.
Lincoln says there is increasing acceptance of high-quality magnetite as a feedstock into direct-reduced iron (DRI) for “green steel” production,which has the potential to substantially decarbonise the steel manufacturing process. DRI steelmaking,which does not use coal and has potential to be based on green hydrogen,requires a significant supply of high-grade iron ore,for which the more commonly-known hematite-goethite iron ores found in the Pilbara region of Western Australia are generally unsuitable.
With diminishing discoveries and a dwindling supply of haematite-based iron ore resources in recent times,the market may soon look to lower-grade magnetite resources to fill the supply gap. A string of billionaire heavy-hitters including Andrew Forrest,Gina Rinehart and Mineral Resources’ Chris Ellison have all recently expressed significant interest in the magnetite space,which no doubt shows there is a demand for the commodity.
“Magnetite,with its environmental advantages,has emerged as an appealing option for sustainable,low carbon steel production.”
Lincoln Minerals chief executive officer Jonathon Trewartha
Management believes the potential demand for high-quality magnetite feedstock is expected to increase substantially in the medium to longer term.
Previous drilling at the Green Iron project delivered assays of up to 33.63 per cent iron. The company says its magnetite resources estimates feature strong profiles including average concentrate grades of 66.4 per cent iron 5 per cent silicone dioxide.
Lincoln Minerals chief executive officer Jonathon Trewartha said:“Magnetite,with its environmental advantages,has emerged as an appealing option for sustainable,low carbon steel production. Lincoln’s Green Iron Project,focused on producing a coarse-grind,high-grade iron ore concentrate,is expected to attract interest from potential steel producers,as has been the case with other peers in the region. The project’s unique properties,positive environmental impact,and proximity to established infrastructure and workforce contribute significantly to the project’s attractiveness.”
The SA Government recently revealed its interest in exploring the development of a hydrogen-based DRI plant,which it is looking to establish within the State before the end of the decade. Just last month,it said an expressions of interest process would begin in June,seeking involvement from businesses to jointly investigate the development of such a plant.
SA Premier Peter Malinauskas said a commercial de-risking study would be a crucial first step in using the State’s natural endowment of quality iron ore to provide green iron to the world.
Lincoln says previously-completed studies into the Green Iron project investigated production of between 3 and 10 million tonnes per annum of magnetite concentrate after analysing all aspects of project development including mining,processing,logistics,port,power and water. Since those studies were completed,the Eyre Peninsula area has seen key upgrades to crucial infrastructure with installed renewable energy generation and main road development.
So,it seems Lincoln has timed its renewed interest in the Green Iron project perfectly,with recent initiatives aimed at decarbonising Australia’s industry within its own backyard,in addition to the significant potential scale of its SA operation.
And the market also appears to agree based on the increased volume of shares moved after this morning’s resource news was delivered.
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