JORC Resource

  • Mineral Resource of 205.2Mt at an in-situ grade of 57.8% Fe estimated at a Fe cut-off of 40% from infill drilling on prospects Plateau 2 and Plateau 3

  • Initial Mineral Reserve of 53.96Mt at a grade of 61.6% Fe

  • Will produce a high grade (60-63% Fe) low cost Direct Shipping Ore (‘DSO’) product

    • Deposit contains easily fragmented rock, which should allow high crushing rates at low power consumption

    • Iron can be separated from gangue elements using a simple gravity circuit allowing good grade improvement at high recoveries — over 95% of the iron oxides have been found to be liberated in the dense fractions

  • Significant resource upside potential — initial resource covers only Plateau 2 and a portion of Plateau 3 — the 11 km sq Plateau 1 is larger than Plateau 2 in aerial extent and has yet to be drilled.  Reserve expected to increase proportionately with resource expansion.

  • Metallurgical tests, limited to the Planetaya area of Plateau 2, have indicated a 40% lump: 60% fines ratio in the consolidated zone of the lithology, and 15% lump: 85% fines ratio in the unconsolidated zone

    • Equates to an overall ratio of 24% lump: 76% fines

    • Potential to improve metallurgy — significant lump yield improvement of the unconsolidated ore closer to the mountain and the source of the canga accumulation at Plateau 2 and Plateau 3 from 15% to 40%

  • Further test work has highlighted:

    • Very low decrepitation (Decrepitation Index) — therefore suitable for metallurgical processes and direct Blast Furnace feed

    • Low power requirements; average uniaxial compressive strength of the samples from the core was 18.7MPa combined with an average crushing work index of 4.4kWh/t, indicating that the ore will be conducive to crushing at high rates with low power consumption

  • It is envisaged that a simple dry plant process involving crushing and screening will produce a high grade lump product in the early stages of production followed by the introduction of a wet process, which would be fully able to produce both a high grade lump and fines product

  • Drilling on-going and remains focussed on targeting additional haematite bearing intersections of canga, plus further metallurgical testing to better understand the distribution of premium lump material (DSO) within the canga

Updated Resource Estimate at 40% Fe cut-off

Category Tonnes* (Mt) Bulk Density (t/m3) Fe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%)
Measured 20.8 3.1 61.4 3.6 3.3 0.08 4.9
Indicated 174.2 2.8 57.5 6.3 4.6 0.08 6.3
Inferred 10.2 2.7 55.8 7.8 5.0 0.08 6.9
Total 205.2 2.9 57.8 6.1 4.5 0.08 6.2

* The tonnage has been factored to account for cavities.