Magnetite projects discard a non-magnetic stream that may still contain iron, so some developers test whether it can be recovered. Hawsons Iron Limited (ASX:HIO) reported such testwork on 28 September 2026 for the Hawsons Iron Project near Broken Hill.

Company overview

Hawsons Iron Limited (ASX:HIO) is developing the Hawsons Iron Project in New South Wales, which plans 10 million tonnes per year of high-grade magnetite concentrate with a target above 69% Fe.

The testwork

The program tested the non-magnetic stream from the wet low intensity magnetic separator. Bench-scale wet high intensity magnetic separation recovered 75.0% of the iron while rejecting 59.6% of silica and 67.5% of alumina. Reverse flotation showed the material responds to beneficiation, and the target is a 55% to 60% Fe hematite concentrate, separate from and additional to the magnetite concentrate.

The feed came from Loesche vertical roller mill testwork, with WLIMS non-magnetic feed grades of about 10% to 12% Fe and 50% to 52% silica.

Next phase

A follow-up program will optimise magnetic separation conditions and flotation reagents and compare circuit configurations before a full commercial study. It runs alongside the Feasibility Study and is not expected to affect its timing. The company said it believes the flowsheet application could be a world first at that scale.

Where this sits in the project plan

The Hawsons Iron Project near Broken Hill plans a large magnetite concentrate operation of 10 million tonnes per year, targeting a grade above 69% Fe. The hematite testwork examined a secondary product that would be separate from and additional to that magnetite output. The company said the results provide a credible technical basis for the next phase of work, which is expected to take several months.

Feed and grade details

The testwork used material generated in Loesche vertical roller mill testwork. The VRM feed graded 16.55% Fe, 49.31% SiO2 and 8.83% Al2O3, and dry cobbing produced magnetic intermediates of about 51% and 53% Fe. The dry cobbing intermediate was ground and processed by wet low intensity magnetic separation to recover magnetite, leaving the non-magnetic material used in these byproduct tests.

Non-magnetic feed to the byproduct tests graded 12.08% and 9.98% Fe, with silica above 50%.

What the company says it learned

The Managing Director said the results are encouraging at this interim stage because they show a substantial proportion of the iron in this stream is present as recoverable iron oxide minerals, principally hematite, rather than being locked within gangue. He described a plan to focus on improving the grade-recovery balance and establishing whether the opportunity can support a viable flowsheet.

The company noted that recovering a hematite-rich product from a secondary stream alongside premium magnetite would be an innovative flowsheet application.

Sector backdrop

Secondary recovery of hematite from magnetite process streams could add products, but must be shown to be technically and commercially viable.

Magnetite flowsheets reject large volumes of gangue, and treating the reject stream can recover additional iron units, which improves resource utilisation but adds Capital and operating cost.

Hematite concentrates at 55% to 60% Fe are lower grade than premium magnetite and typically sell at different prices.

Risks shareholders should weigh

Results are interim, bench scale and show 75% recovery of iron in a low-grade stream. The target grade of 55% to 60% Fe has not yet been achieved.

A viable flowsheet and market for a hematite product are unproven, and further testwork takes several months.

The Feasibility Study, funding and approvals for the main project are still required.

The recovery of 75.0% of iron into a product stream does not equal a saleable concentrate, and silica and alumina rejection must be sufficient for marketing.

The study is separate from the Feasibility Study, and results may not change the project case.

What’s next

Hawsons will run the follow-up optimisation program concurrently with the Feasibility Study. Shareholders may wish to watch for results and the study.

The follow-up program is expected to take several months and will compare circuit Options before a commercial study.