Highlights

  • Elutriation testing increased magnetite concentrate iron grade from 67.8% to 69.3%.
  • Separate work recovered 75.0% of iron from a non-magnetic waste stream.
  • The proposed hematite product remains subject to further metallurgical studies.
  • Cash at 30 September 2026 was $901k, with a reported 1.22-quarter runway.

Hawsons Iron Limited (ASX:HIO) is developing the Hawsons Iron Project near Broken Hill in New South Wales, focused on producing high-grade magnetite concentrate. Its September 2026 quarterly activities update detailed two metallurgical test programmes: an elutriation process intended to improve magnetite product quality and separate work on recovering iron from material previously treated as waste. Both remain technical development activities rather than commercial production.

Elutriation Changes the Concentrate Specification

Bulk elutriation testwork lifted the magnetite concentrate iron grade from 67.8% to 69.3%, while reducing silica and alumina impurities. Elutriation is a separation stage designed to remove unwanted components from concentrate. For ASX:HIO, the result provides additional information for process design, but a laboratory outcome does not establish equivalent performance at full plant scale.

The company included an elutriation stage in its updated Pre-Feasibility Study flowsheet and intends to refine operating conditions through the Feasibility Study. Hawsons has described a planned magnetite concentrate product with an iron grade of 69% or greater. The 69.3% test result relates to the sampled material and should not be interpreted as a guarantee of future plant grade or recovery.

Hematite Recovery Remains an Additional Opportunity

A separate programme examined iron recovery from the non-magnetic process stream. In testing, 75.0% of the iron in that stream was recovered, alongside rejection of 59.6% of silica and 67.5% of alumina. ASX:HIO is assessing whether the material could support a different hematite concentrate product, rather than assuming that the test automatically changes the project’s principal magnetite product.

The company identified a potential hematite concentrate containing 55% to 60% iron. Additional magnetic separation, flotation reagent testing and comparisons of circuit arrangements are necessary. The September report did not announce a hematite reserve, a separate customer contract or a commercial production decision. Recovery in experimental testing and marketable output under operating conditions are distinct milestones.

September Funding and Project Work

At 30 September 2026, ASX:HIO held $901k in cash, compared with $498k at the previous quarter end. Quarterly operating cash outflow was $428k, while investing outflow was $311k. The Appendix 5B estimated 1.22 quarters of funding based on the company’s calculation. That figure indicates that financing remains relevant to the scope and timing of further technical work.

During August 2026, a share purchase plan raised $1.23m through 111,818,112 shares issued at $0.011 each, with one attaching option per share. The options are exercisable at $0.015 and expire on 31 December 2027. After the quarter, the company reported receiving $658k under the FY2026 Research and Development Tax Incentive. ASX:HIO also identified further fundraising as a possible requirement for planned studies.

Development Dependencies

Future project work includes feasibility-level optimisation of the process flowsheet, follow-up hematite trials and additional drilling, subject to cultural heritage work. The company also listed the renewal of exploration licence EL6979, expiring in December 2026, among near-term administrative matters. The quarterly update did not establish a complete development timetable or disclose a final construction funding package.

Key Insights

The September update separates demonstrated test results from the development tasks still outstanding. ASX:HIO has reported improved magnetite concentrate grade and measurable iron recovery from a second stream, but those outcomes require further engineering validation. Cash availability, permitting work and feasibility studies remain material elements of the proposed project’s progression.