THE BOURSE WHISPERER: Havilah Resources (ASX: HAV) has claimed confirmation of a new iron ore discovery at the Grants prospect in the Braemar Iron Ore Province in northeastern South Australia.
The company described the discovery as having no overburden and is situated eight kilometres from the Transcontinental railway in close proximity to other power and gas infrastructure.
This discovery follows Havilah’s iron ore success at the Maldorky iron ore project, which the company claims to contain a substantial iron ore resource of similar style.
The company is also currently undertaking exploration of the Lilydale iron ore prospect.
Havilah said the Grants discovery underpins its intention of developing a long life regional iron ore portfolio capable of production within a relatively short timeframe for moderate capital expenditure.
“Grants will be a very attractive mining proposition owing to the fact that the deposit starts at surface and extends up to 180 metres depth in a single solid mass of essentially flat lying iron ore, with no overburden and minimal internal waste,” Havilah Resources chairman Dr Bob Johnson said in the company’s announcement to the Australian Securities Exchange.
“The material appears to be mineralogically similar to Maldorky, hence it is expected that the same comparatively simple metallurgical processing methods would apply.
“Standing on top of the Grants deposit, one can see and hear the trains moving down the Transcontinental railway line, which makes Grants somewhat unique as new iron ore discovery.”
Grants iron ore deposit in relation to local terrain. An I-Site
laser scanner survey has recently been completed over the deposit
producing extremely accurate topography for resource estimations and
future mine planning purposes. Source: Company announcement
Havilah summarised the key features of the Grants iron ore deposit to be:
– An Inferred Resource of 304 million tonnes of 24 per cent iron (applying an 18 per cent iron cut-off grade);
– Contains more than 100 million tonnes of premium grade product (greater than 60 per cent iron) with very low levels of impurity elements, assuming a yield factor of 33 per cent;
– Ideal open pit geometry – a homogeneous keel shaped mass of iron ore up to 180m thick covering approximately 130 hectares, with minimal internal waste and almost no overburden; and
– Favourable logistics – only 8km from railway line, near to power and gas and 1 hour from Broken Hill.
Based on recent systematic resource drilling at Grants, Havilah geologists have developed a geological model of the deposit as being a large keel-shaped slab of massive iron ore that outcrops at surface.