Hawthorn advancing plans to resume gold mining at Anglo Saxon JV

Hawthorne Resources: Investment Opportunity & Project Updates

Key Concepts:

• Anglo-Saxon Project: Hawthorne’s primary gold project located near Pingen, Western Australia.
• Magnetite Joint Venture (Mount Beavenon): A joint venture with Hancock and Legacy Iron Ore focusing on magnetite iron ore.
• “Other Minerals” Joint Venture: A joint venture with Hancock and Legacy Iron Ore exploring nickel, copper, lithium, and gold.
• MRE (Mineral Resource Estimate): An estimate of the quantity of a mineral deposit.
• PFS (Pre-Feasibility Study): An initial study to determine the economic viability of a mining project.
• Capex (Capital Expenditure): Funds used by a company to acquire, upgrade, and maintain physical assets.
• Royalty Stream: A percentage of revenue paid to a company based on production from a mine.
• Beneficiation: The process of improving the concentration of valuable minerals in an ore.
• Pre-strip: The removal of overburden (waste rock and soil) to expose ore.

1. Investment Opportunity & Company Overview

Hawthorne Resources presents a four-pronged investment opportunity. The core of their portfolio is the Anglo-Saxon gold project. Additionally, they hold a 1% royalty stream on the Mount Beavenon magnetite project (joint venture with Hancock and Legacy Iron Ore) and a joint venture focused on “other minerals” – nickel, copper, lithium, and gold – also with Hancock and Legacy Iron Ore. A key differentiator is Hawthorne’s strong cash position, currently holding $12 million, meaning they are not currently seeking to raise capital. Brian Thornton, Managing Director and CEO, emphasized the company’s ability to generate and return cash to shareholders, demonstrated by a dividend return in 2021 and a 4.5 cent per share capital return.

2. Anglo-Saxon Gold Project – Details & Progress

The Anglo-Saxon project, located 150km east of Kalgoorlie near Pingen (an historic mining center), is currently Hawthorne’s primary focus. The project was initially mined between 2017 and early 2020, yielding 50,000 ounces of gold at a grade of 2.5 g/t, with a starting gold price of $1,650 AUD per ounce, resulting in a $20 million profit. Recent drilling (7,800m completed in November last year) has significantly increased the Mineral Resource Estimate (MRE) from 157,000 ounces at 6.1 g/t to 200,000 ounces at 4.1 g/t. This positions Anglo-Saxon as one of the highest-grade gold projects in the Western Australian goldfields. Hawthorne holds a granted mining lease on the project and benefits from proximity to existing mills – Rebecca’s Mill (25km south) and Carousam’s Mill (30km north) – and has previously shipped ore to Kalgoorlie (150km away) profitably.

3. Project Development & Future Strategy – Anglo-Saxon

Hawthorne is currently undertaking an optimization study on the Anglo-Saxon project, expected to be completed in 2-3 weeks. This will be followed by a financial feasibility study. The initial plan involves a significant pre-strip to unlock at least 150,000 ounces of high-grade ore. Hawthorne is considering several development options: a joint venture, independent operation (as previously done), or attracting a corporate partner for funding and development. Brian Thornton stated, “We’re looking at a couple of different alternatives at the moment…We might join venture it. We might sort of go alone…or we might even look at another corporate coming in.”

4. Other Assets – Mount Beavenon & “Other Minerals”

The Mount Beavenon magnetite project, a joint venture with Hancock and Legacy Iron Ore, represents a long-term opportunity. Hancock is currently refining a Pre-Feasibility Study (PFS) completed in 2024-25. The project contains approximately 1.2 billion tons of magnetite ore, with a high grade, beneficiating to approximately 70% Fe (iron). Hawthorne’s 1% royalty stream on this large-scale project provides a “nice back pocket opportunity.” The “other minerals” joint venture with Hancock and Legacy Iron Ore focuses on nickel, copper, lithium, and gold, offering further diversification.

5. Financial Projections & Long-Term Vision

Hawthorne’s long-term success is predicated on its ability to generate significant cash flow. Brian Thornton highlighted the potential for profitability in the current gold market, estimating a $4,000 AUD per ounce margin (based on a $7,000 AUD gold price and a $3,000 AUD cash cost per ounce) from the Anglo-Saxon project. He stated, “If we look at a a cash cost for the operation of $3,000 an ounce, which we think's a reasonable number at the moment, versus a gold price of $7,000 today, there's a 4,000 ounce margin on a significant resource number…” The company aims to utilize this cash to pay dividends, fund exploration, or pursue corporate opportunities within the gold sector. Hawthorne aims to prove to the market that it is a “cash generating company” and a unique entity that returns value to shareholders.

6. Notable Quote

“We’ve proven to the market that we…we’re a cash generating company. We’re unusual in that sense. We’ve actually generated cash and returned money to shareholders.” – Brian Thornton, Managing Director and CEO, Hawthorne Resources.

Conclusion:

Hawthorne Resources presents an investment opportunity centered around its Anglo-Saxon gold project, bolstered by royalty streams from significant magnetite and diversified mineral exploration ventures. The company’s strong cash position and demonstrated ability to generate and return capital to shareholders differentiate it within the junior mining sector. The upcoming optimization and feasibility studies for Anglo-Saxon are critical next steps, with multiple development pathways being considered to maximize shareholder value. The long-term vision focuses on sustained cash generation and strategic reinvestment within the gold space.