Hawsons Iron Ltd (ASX:HIO) has advised that analytical work on its mineral resources estimate update has not been completed on time due to the cumulative delaying impact of wet weather, COVID and additional time required to process the necessary data.
Managing director Bryan Granzien said independent geological experts, H&S Consultants (H&SC), still required a few more weeks to complete this work and submit their report which was now expected by the end of July.
Around-the-clock operations
Granzien added: “Our stated intention was to announce this update during the June quarter and we have done everything in our power to meet that deadline.
“During our confirmatory drilling program, we experienced several significant rain events on site.
“This, combined with COVID workforce impacts, saw us pivot swiftly to minimise delays by extending drilling shifts and laboratory processing to around-the-clock operations”.
“We completed sufficient drilling, got the samples analysed and had the data sent directly from the laboratory to our competent person at H&SC, but the 3D modelling software has detected some logging calibration inconsistencies which now have to be assessed and rectified.”
Background
Hawsons revealed a material mineral resource upgrade to 400 million tonnes in October 2021 including a 9% per cent increase in indicated resources to 132 million tonnes and an 18% increase in inferred resources to 268 million tonnes.
The exploration target published in Hawsons’s maiden resource announcement remains at 6 – 11 billion tonnes.
Hawsons’ recent drilling program has been designed to prove up sufficient tonnes within the highest confidence measured resources category to support the BFS and satisfy debt requirements to finance the development of the company’s high-grade Hawsons Iron Project.
Balance BFS work continuing at pace
Granzien said the balance of work being undertaken for the BFS was unaffected and continuing at pace, including finalisation of product testing work and processing plant flow design which would be announced in the next few weeks.
He said the company had recently completed the current resource drilling program on site and these additional samples will continue to be processed to add to the database but are not necessary for the impending upgrade.
Granzien said: “Due to the rain delays and laboratory turnaround timeframes in what can only be described as a hot resources sector, the remainder of the borehole data captured will be incorporated into another updated Mineral Resource estimate we expect to release prior to the end of the BFS.”