The company, with its 36% partner Pure Metals, said the PFS put the costs for its Broken Hill project in the first quartile of CRU’s global iron ore supply cost curve, adjusted to the benchmark price for 62% fines.

The project has an estimated net present value of $1.1 billion and a 30% internal rate of return.

Hawson’s life-of-mine annual earnings (EBITDA) are put at $401 million.

The announcement comes as the Metal Bulletin’s 62% fines held above $70 a tonne overnight for the third time this month, levels last seen in early April.

However Carpentaria expects to produce 10 million tonnes per annum of Supergrade concentrate over 20 years, with an average plant recovery of 70% iron, which was calculated to bring a premium of $25/t over the 62% fines price, using the long-term average 65% fines price as a base index.

Its total C1 free-on-board costs after pre-strip would be $33.08/dmt, the PFS said, and $39.74/dmt all-in FOB.

The company has already signed non-binding letters of intent with seven potential customers for 12Mtpa of its Supergrade product, more than targeted production levels.

Carpentaria plans to process its ore on-site in a 10Mtpa plant, transport the final mineral concentrate via a slurry pipeline to a rail head site near Broken Hill, then send it for export via Port Pirie where a port upgrade is being proposed.

“Hawsons is positioned to become the basis of a long-term, low cost premium iron business for our company,” managing director Quentin Hill said.

“These results substantially lift the investment grade and the strategic value of the project.”

He said the company was now well-positioned to attract the necessary investment to advance towards mining and would further optimise the project where possible.

The company ended the March quarter with A$1.79 million cash and its shares were up 10% to 6.6c in morning trade, representing a 29.4% gain year-to-date.

At that price the company is capitalised at $11.2 million.