A new progress report looks like it may have saved the Hawsons Iron Ltd (ASX: HIO) share price from the big market sell-off today.
Hawsons Iron shares dipped to an intraday low of 56 cents in early trading — a 9.7% drop on yesterday's close of 62 cents. Then just after noon, the iron ore explorer announced it's another step closer to bringing its flagship project to life.
Management has appointed Australian Mine Design and Development (AMDAD) as the mining consultant. This follows the awarding of other key Bankable Feasibility Study (BFS) contracts earlier this year.
AMDAD will be responsible for preparing a complete mine plan. This will include final pit design, mining sequence, implementing schedules, fleet composition, mine power requirements, and costings and pathways to net-zero emissions.
Image source: Getty Images
Hawsons Iron trying to reach net zero
Just prior to AMDAD's appointment, management received a report from the consulting arm of Worley Ltd (ASX: WOR), Advisian. The report detailed the ideal energy balance to optimise the project's ESG and sustainability outcomes.
Hawsons Iron's executive chairman Bryan Granzien said:
Advisian has also developed a sustainability framework to enable us to embed material sustainability considerations within the project's decision making and value improvement processes.
The aim of this framework will be to minimise any exposure to risks from material sustainability issues and maximise any opportunities for beneficial outcomes.
Hawsons Iron outshines other ASX resources shares
Many ASX resources shares are on the nose on Thursday. The large crash in US equities last night and lower commodity prices are to blame.
Sector leaders like Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP) are down 1.5% to 2%.
At the time of writing, the Hawsons Iron share price has recovered almost all of this morning's losses. It is now down just 0.81%.
Rain presents a challenge
Hawsons Iron is developing the Hawsons Iron Project, which is 60km southwest of Broken Hill in New South Wales.
That region is experiencing very wet weather that is hampering the miner's operations. It is trying to mitigate this and expedite analysis on a large number of drill samples it has dug up.
Granzien added:
The Bureau Veritas laboratory in Adelaide has been working 24/7 on the analysis of 500 samples a week to generate the assay results required to update the project's Mineral Resource estimates as scheduled before the end of this quarter.
Everyone's been working around the clock to ensure we can deliver on time and meet our schedules despite ongoing weather disruptions.
Longer-term Hawsons Iron shareholders are unlikely to worry about today's share price volatility. The shares have gained more than 400% in value over the past 12 months.
