Level 2, 9 Havelock Street, West Perth WA 6005 | |
PO Box 1160, West Perth WA 6872 | |
Telephone: (61 8) 9481 8627 | |
ABN: 44 114 553 392 | Facsimile: (61 8) 9481 8445 |
E-mail: redhillinfo@redhilliron.com.au | |
Website: www.redhilliron.com.au |
24 November 2016
Company Announcements Office ASX Limited
Level 4, 20 Bridge Street
SYDNEY NSW 2000
Red Hill Iron Ore Joint Venture - Mineral Resources Update
API Management Pty Ltd (API), the Manager of the Red Hill Iron Ore Joint Venture (RHIOJV), has delivered to Red Hill Iron Limited (RHI) and the other members of the RHIOJV updated Mineral Resource estimates dated 22 November 2016. A copy of the API covering letter and the report produced by Golder Associates Pty Ltd are attached.
The updated Mineral Resource estimates include maiden estimates for the Trixie West and Cardo Bore West Channel Iron Deposits (CID) and an updated estimate for the Red Hill Creek CID. The overall increase of 3 million tonnes in Mineral Resource estimates takes the total Mineral Resources from 813Mt (RHI ASX announcement 26 June 2015) to 816Mt.
RHI owns a 40% interest in the RHIOJV, which is maintained on a carry basis by API at no direct cost to RHI until the commencement of commercial production.
Upon commencement of commercial production, RHI may either elect to participate in the continuing RHIOJV mining operation at the 19% level or elect to convert its joint venture interest to a 2% FOB Royalty on all RHIOJV iron ore production. In the event of RHI electing to convert to the 2% Royalty, all funds advanced on RHI's behalf during the carry phase will be written off and the company's interest in the RHIOJV (which will be restricted to the FOB Royalty) will be debt free.
Neil Tomkinson Chairman
22 November 2016
Red Hill Iron Limited Level 2
9 Havelock Street
WEST PERTH WA 6005
Aquila Steel Pty Ltd Level 14
225 St Georges Terrace PERTH WA 6000
AMCI Australia Pty Ltd Level 37 Riverside Centre 123 Eagle Street
BRISBANE QLD 4000
Attention: Neil Tomkinson / Miles Zhou / Brian Clifford Dear Sirs,
API Management Pty LimitedABN 66 112 677 595
Level 1
1 Preston Street
Como WA 6152
Telephone: (61) 8 9423 0222
Facsimile: (61) 8 9423 0233mail@apijv.com.au www.apijv.com.au
Re: Updated Mineral Resource Estimates for RHIOJV to include maiden estimates for Trixie West, Cardo Bore West and an updated estimate for Red Hill Creek West that incorporates infill RC drilling completed in 2015API Management Pty Ltd (APIM) and Golder Associates Pty Ltd (Golder) have updated the RHIOJV Mineral Resource estimate to include the maiden Mineral Resource estimates for the Trixie West and Cardo Bore West Channel Iron Deposits (CID) and an update to the Red Hill Creek West (CID) Mineral Resource estimate that incorporates infill RC drilling that was completed in 2015. The division of each deposit based on Joint Venture (JV) ownership is summarised in the Table below.
Full Deposit Name | Sub-Reference Name (JV Split) | JV |
Cardo Bore | Cardo Bore | MSIOJV |
Cardo Bore West | RHIOJV | |
Red Hill Creek | Red Hill Creek West | RHIOJV and APIM Mt Elvire Project |
Red Hill Creek (including Red Hill Creek Extension) | APIJV | |
Trixie | Trixie | APIJV |
Trixie West | RHIOJV |
The Mineral Resource estimates are presented in the attached report received from Golder dated 22 November 2016. A Competent Person Statement is contained within the report covering work completed by Golder.
In the instance the Mineral Resource Statement is to be issued for public release the following Competent Person Statement should be attached when referring to the resources detailed in this report. Prior to public release of the Mineral Resource Statementconsent must be obtained from the Competent Persons. Consents will be provided following review by the Competent Persons of the proposed release document.
Competent Person Statement
The Competent Person responsible for the geological interpretation and the drill hole data used for the resource estimation is Mr Michael Wall who is a full-time employee of API Management Pty Ltd, and Member of the Australasian Institute of Mining and Metallurgy. Michael Wall has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition).
The information in this statement which relates to Mineral Resources is based on information compiled by Mr Richard Gaze who is a full-time employee of Golder Associates Pty Ltd, and Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Richard Gaze has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition).
Mineral Resource Estimates
APIM has reviewed the Mineral Resource estimates for each deposit and is satisfied the estimates have been completed to industry standard. All Mineral Resource estimates are reported at a 52% Fe block cut-off.
The updated global RHIOJV Mineral Resource estimate of 816 Mt at 56.5% Fe represents an increase of 3 Mt from the previously released 2015 Mineral Resource for the RHIOJV (813Mt). The previous estimates also used a 52% Fe block cut-off. Please note rounding of values has resulted in variation between tables.
The increase is attributed to;
discovery and reporting of the maiden resource estimate for the Trixie West deposit (2.7 Mt);
discovery and reporting of the maiden resource estimate for Cardo Bore West (0.1 Mt).
Table 1 summarises the three new estimates for Red Hill Creek West, Trixie West and Cardo Bore West.
Mineral Resource estimates from Cardo Bore East, Cardo Bore North, Catho Well North, Cochrane, Jewel, Kens Bore, Trinity Bore and Upper Cane were not updated as part of this work.
The full RHIOJV Mineral Resource Statement is presented in Attachment A. Refer to Figure 1 for deposit locations.
Table 1. Summary of Mineral Resource estimates for the three identified Channel Iron Deposits within the RHIOJV (52% Fe cut-off).Deposit | Joint Venture | Tonnage Mt | Fe % | SiO2 % | Al2O3 % | Mn % | LOI % | MgO % | P % | S % |
Cardo Bore West | RHIOJV | 0.1 | 52.34 | 7.91 | 7.15 | 0.08 | 9.21 | 0.17 | 0.054 | 0.009 |
Trixie West | RHIOJV/ APIM Elvire | 2.7 | 55.30 | 7.56 | 3.75 | 0.02 | 9.13 | 0.05 | 0.069 | 0.026 |
Red Hill Creek West | RHIOJV/ APIM Elvire | 27.8 | 56.98 | 5.62 | 3.30 | 0.02 | 8.89 | 0.07 | 0.116 | 0.010 |
TOTAL | 30.6 | 56.82 | 5.80 | 3.35 | 0.02 | 8.91 | 0.07 | 0.112 | 0.011 |
The Mineral Resource estimate update for the three deposits (Cardo Bore West, Red Hill Creek West and Trixie West) totals 31 Mt at 56.8% Fe.
Red Hill Iron Limited published this content on 24 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 November 2016 08:44:07 UTC.
Original documenthttp://www.redhilliron.com.au/asx_pdfs/RHI20161124.ASX.RHIOJV%20Resource%20Update%20RHI%20+%20API%20+%20Golders.pdf
Public permalinkhttp://www.publicnow.com/view/2C08504C30BF3E5D12268CE80BD763B6E4BAFAED