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"Two of these prospect Ridges C and E are open along strike for over 9km within the tenement with potential to significantly increase the 10.4Mt @ 60.4% Fe (including 7.8Mt @ 60.1% Fe at the Sirius Extension target and 2.6Mt @ 61.5% Fe at the Ridges targets) resource."
JORC compliant 10.4Mt @ 60.4% Fe could increase substantially with ridges C and E open along strike for over 9km is the stand out for me.
We could be sitting at +30Mt or higher when they tap into those.
Agree, upside from Hanc0ck is MASSIVE, and very profitable. Both RIO and BHP had these many years ago and must be looking in with such positive numbers from scoping study.
Thanks. Seem to remember the labs along with the rest of Australia shut down for 2 weeks at Christmas. Still a chance we find an original Mother Lode, slim but still a possibility. Good new flow for the next few months.
Actually 5x5 - if the team submitted the initial 10 samples the same week or just after that RNS on 6th October, Bill is indicating the lab has said they'll get those back in 6-7 weeks in November at some point.
Therefore if they now submit the remaining 14 say by end of October, that suggests mid to late December for those if the labs can process in 6-7 weeks.
Personally I think, let's see how long the 10 initial samples take to be tested and reported and then assume the same timeline for the last 14 that have or are being submitted :-)
Below are the previous E.Hill Drilling Update RNS highlights from 2 weeks ago mate. I'm assuming we get the 10 drill results mid nov and the rest have just been submitted or will be as they just completed them a few days ago .
I do think labs are still giving 2-3 month lead times - so yes probably early next year for those.
• Ongoing drilling at Elizabeth Hill continues to produce visible sulphides
o Visible sulphides and native silver have been observed in core and RC chips, which
appears to support the Company’s view that a larger polymetallic halo exists around
the original high-grade silver deposit
o Drilling to date has provided important QA/QC validation of historic work and helped
identify new mineralisation
o Excellent quality core attained, which has been logged, cut and despatched
• Currently, around 753m has been drilled as part of the ongoing drill programme at Elizabeth
o 211 metres of diamond core drilling (4 holes);
o and 542m of RC drilling (6 holes)
• 14 RC holes for approximately 1,100m remain, which will test targets along strike of the main
orebody and at the nearby J-reef
Thanks Dip. Just to clarify, 24 holes in EH planned, 10 completed, results mid end Nov. Remaining 14 ongoing, so Feb 2022. Is this correct?
*How has E.Hill drilling gone, have you intercepted silver and other materials and also expected timing for lab results?
- Maiden drilling just completed, beautiful intersections of pure silver and also sulphides more associated with copper and nickel from XRF readings (not final lab results) but theuy are good indicative results and need to be backed up officially by lab results
- Excellent intersection from cores from historic ore body (shallow northern end of ore body) delivered higher amounts of silver than expected and also at deeper depths outside the original historical resource model
- 6-7 weeks turnaround promised by labs, so middle to end of November pegged for first results hopefully and will be used to help build next stage of work.
*Potential lead time to first development for Han****?
- Need permitting, environmental, heritage, native title studies etc. to convert exploration license to a mining one as per the usual process
- Lloyd Edmunds onboard in Perth with experience at Fortescue https://www.linkedin.com/in/lloyd-edmunds-98600050/
- 18 months from now if no major issues to commence production
- Permit work is current and ongoing for exploration and Bill is sourcing the right company to commence the studies in a costly and time efficient manner.
*Munni Munni prospectivity near E.Hill?
- All a big associated Munni Munni intrusion area, another non owned PGE deposit already defined in the area and part of UFO land packages contain historical PGE anomalies and also some exposure to Hunters Reef which is associated with that main Munni Munni deposit (not on Aliens ground) and it crops up inside our tenement. (In Aero-Mag slide).
*What the process is for going into production for Han****?
- Studies as detailed above
- Lloyd is looking at mobile mining and suppliers etc.
- Bill focusing on drilling programs, MRE category updates via increasing drilling density via DC drilling to help achieve this and also get the resource increased by another 10 to 20m tonnes within Han****.
*Working remotely from Australia?
- Challenging not being onsite due to the practical experience Bill has
- Fortunate with the Chairman Dan being in place in Perth and great consultants to collaborate with too
- No communication issues via daily zoom type meetings around drilling for example
- Preferable to visit in person and hoping to do so around Easter 2022 but happy with progress to date on all Australian projects despite the Pandemic
- Hoping to get E.Hill dewatered soon to be able to go and investigate historic workings
- Mexican projects undrilled yet, but team working to get to that stage and get back on track.
*Mexico - Donovan 2 Copper project
- As above
- Finalising updated drill permit to go and drill Los Alamos water well target planned.
Q & A Session
*What are the cash costs and expected dollar per tonne margins on iron ore on Hannock?
- Scoping Study looks at around or below $60 per tonne FOB, so $60 per tonne profit on $120 current price with Year 1 at 0.5m tonne ($30m) and Year 2 at 1m tonnes production ($60m)
- Even at $100 price, 1m tonnes per annum production is $40m profit per annum.
- Price outlook varies hugely amongst analysts, hard to predict but running numbers at conservative $100 per tonne is still very profitable
- Steel and Cement are main products in construction for all of these global infrastructure plans and bodes well for iron ore demand.
*Have any other similar projects worked in Australia (and something else re. rail, truck and port)?
- Yes, Fenix have accomplished a project from maiden MRE to now starting production in 2021 and doing what UFO plan to do and doing it very well
- They are mining and trucking DSO to Port Geraldton across same sort of distances, recent quarterly displayed excellent income and future potential for their operation.
*10mt size to date, what is the potential size of Han**** and also Brockman?
- Tested only 2km of ridge systems yet, could be 10,15,20 and up to 30km of lines of ridges of potentially repeated iron ore beds at surface at Han**** - significant upside
- Brockman has that recemented type of iron ore that is often very high grade, BHP and RIO have been drilling at boundaries too for this same kind of ore so can be assumed we may have great potential here, but hard to define numbers yet.
*Brockman further west
- 2 historical BHP targets nearby, 3rd to south
- East Kanga type deposits, reworked from originally very high-grade material that becomes sedimented, broken down and repacked and often runs as high or higher than original material, limited work so far indicates potential for up to 65% DSO, as high as it gets
- Permitting probably in place for work to commence at some point next year.
- Historically produced 1.2Moz Silver from 1998-2000 at 2,195 g/t Ag with mining stopping due to low price of silver at time , around $4 per Oz
- Previous JORC compliant resource of 4.05m Oz at greater than 200 g/t Ag
- Surface resource and depth extension of High Grade below 100m is untested
- Poly Metallic Halo of Copper, Nickel, Cobalt around Silver also untested
- Checking potential of re-opening of underground workings
- Located only 40km, south of Karratha regional centre
- Drilling program just finished in last few days and Bill now shows new Aero Mag data on a slide with a prioritised view of 24 targets
- Munni Munni license wrapped around it provides further compelling opportunities.
*Mexico - San Celso and Los Campos Silver projects
- Mexico hard hit due to low vaccination rollout
- Looking at ways to support communities to help enable drilling to commence and need to get required permitting in place
*Board and Management
- New addition Jo Battershill as corporate advisor |: Initially a Geologist with 25 years plus experience across Ops, Business Devt. and finance areas.
- Iron Ore - volatile but long-term outlook remaining strong
- Silver - as above, increasing industrial use and also being used as a store of value akin to Gold
* Han**** Project - Maiden DSO resource defined in 20 months
- In just 21 months, the team have managed to announce 10.4mt @ 60.4% FE resource on Han**** and it is Direct Shipping Ore (DSO)
- Extremely encouraged with initial resource, feesl lots more to come from Han**** and Brockman.
- Ridges C & E continue for at least 9km, whole other series of untested parallel ridges they feel have identical geological components and the +potential to host more DSO.
*Han**** Project - Inaugural Scoping Study
- Maiden JORC MRE defined from only two RC Drill campaigns and restricted to optimised open pit shell at Sirius extension
- Optimised pit shells at 100 USD/t results in complete ore body extraction for an optimal mining plan with extremely low Strip Ratio and less than $30m CAPEX fully repaid in Year 1 of production with £1.25Mt / annum with a half production schedule for Year 1 initially.
*Key Scoping Study results Han**** Project
- Less than $60 USD FOB to port based on near identical project in production (Fenix?)
- Free On Board includes mining, transport, royalties and port costs
- Near 1:1 Strip ratio on Ridge ore bodies and only 1:1.8 on Sirius Extension Pit
- No requirement to build railway, port or large processing plant, can use cost efficient mobile screening and crushing units across kilometres of area.
*Mining Parameters very simple
- DSO contained within Ridge tops so direct access is optimal for Surface Mining units, this option provides great future green ESG credentials such as solar power and minimises ore movement too.
*Huge additional resource potential in remainder of tenement to develop
- 1.5Mt DSO on Ridge E from 1.2km strike length but runs for a further 9km east
- 1.1 Mt DSO on Ridge C within 0.9km strike length and runs a further 7.5km east
- Several ridges running parallel to both ridges across tenement and 70-80% of tenement remains untested
- Phase 3 drilling planned for Q4 2021 with aim of initial MRE of Western Ridges to extend known mineralisation and to upgrade MRE.
*Han**** Logistical Flyover
- Tenement neighbours such as Rio, BHP, Fortescue, Han**** Prospecting who may be interested in our resources
- Access path to Great Northern Highway with 435km route to Open Access Port at Port Hedland and to Utah Point Public Berth for clients to bring in t