Havilah Resources Ltd (ASX:HAV) is seeking to expand iron ore resources at the Grants and Maldorky projects near Broken Hill through a 3,500-metre drilling program funded by SIMEC Mining.
The reverse circulation (RC) drilling program will begin soon targeting the western portion of the Grants Iron Ore Basin.
It forms part of a comprehensive program of work being performed and funded by SIMEC, an affiliate of the GFG Alliance, as part of due diligence on the commercialisation potential of the projects.
CEO Walter Richards said: “We are very pleased to see the commencement of drill-testing of the Grants Iron Ore Basin by SIMEC Mining.
“There is the potential to confirm the existence of a very large iron ore deposit that will add to our existing nearby Grants iron ore resource.
“Grants is approximately one hour’s drive from Broken Hill and is in sight of the transcontinental railway line, which makes the logistics for the deposit and any extensions, very favourable.”
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Earlier this year an agreement was reached with SIMEC to conduct due diligence on the iron ore assets to enable Havilah to fully focus on its Copper Strategy – Enhanced by Cobalt.
Drilling to test extensions
Drilling will test the unexplored eastern extensions of the Grants resource, in what is interpreted to be part of a potentially large iron ore basin covering an area of about 17 square kilometres.
Maldorky contains a JORC indicated resource of 147 million tonnes of 30% iron, while Grants contains a JORC inferred resource of 304 million tonnes of 24% iron.
The only drill hole completed by Havilah within the iron ore basin area to date, in March 2012, returned 69 metres of 31.7% iron from near surface.
This hole ended in iron ore and had the highest average iron grade intersection of all holes drilled in the Grants area.
The 1,000 by 500 metre planned reconnaissance drill hole spacing is designed to determine the broad extent, thickness and grade of iron ore mineralisation in the western half of the basin.
Large RC rig to be used
Drilling will be carried out using a large RC drilling rig contracted by SIMEC Mining and the technical work will be managed by Havilah’s exploration team.
Havilah has carried out all necessary advance preparatory and permitting work for the program.
This includes executing the required native title exploration agreement, an aboriginal heritage survey of drill collar sites, and approval of a Program for Environmental Protection and Rehabilitation from the Department for Energy and Mining.
Maldorky samples being tested
SIMEC continues to carry out extensive metallurgical testing of Maldorky iron samples, with encouraging results so far.
Following completion of the Grants Iron Ore Basin RC drilling, SIMEC may follow-up with several diamond holes to obtain additional core sample material for metallurgical sampling.
Grants Iron Ore Basin in relation to the Grants resource and proposed drill hole layout.
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SIMEC Mining is a division of the SIMEC Group which is an international energy, infrastructure and natural resources business founded 50 years ago.
It is part of the Gupta Family Group (GFG Alliance), which has combined turnover of about US$15 billion and combined net assets of about US$3 billion.
Strong regional presence
SIMEC Mining owns and operates iron ore mines in the Middleback Ranges in South Australia, about 60 kilometres from the town of Whyalla.
These operations incorporate the Iron Baron, Iron Knob and South Middleback Ranges mine sites. The company mines both hematite and magnetite iron ore which is respectively railed and piped to Whyalla.
Most of the magnetite is pelletised and used within Liberty OneSteel’s Whyalla Steelworks, an associated company.
The hematite and magnetite ore is loaded onto ships for transport to a primarily Asian customer base.