Yerecoin Iron Project
Located east of the town of New Norcia, WA, and approximately 120 km North Northeast of Perth, the Yerecoin Iron Project is easily accessible via the Great Northern Highway and local, sealed roads (see Figure 1).
Figure 1: Yerecoin Location Map.
The Yerecoin Iron Project is in proximity to significant existing infrastructure, including:
- open-access, multi-user rail network that connects to the Eastern Goldfields Railway (EGR), a duel gauge/dual track from Northam to Kwinana, enabling direct rail access to export markets via the Kwinana Bulk Terminal
- approximately 10km from a high voltage (33KV) transmission line connecting to the 132KV transmission line at Moora
- approximately 60km from the Dampier to Bunbury Natural Gas Pipeline
Burley owns 70% of the Yerecoin Iron Project, through its 70% acquisition of Novarange. Exploration activities carried out on the Project to date on the Project have defined significant JORC 2012 compliant magnetite resources within the Project (incorporating the main and south zones) totalling 247 Mt @ 29.9% Fe (68.1% Fe concentrate grade at 32.1% DTR) .
Historical Exploration and Studies
Historical studies were completed assessing the technical and economic viability of an operation. Covering some 105.5 km2, the Yerecoin project area was explored since 2007 by various parties, and largely focused on the delineation and development options of the magnetite iron resources. Studies completed are summarised below.
Giralia Resources NL (2007-2012)
In early 2009, Giralia completed its maiden drilling program, intersecting magnetite BIF in most holes. Drilling intersections included:
- 56m @ 35.7% Fe (RCY001 from 24m),
- 44m @ 31.55% Fe (RDY002 from 188.64m),
- 6m @ 30.2% Fe (RDY017 from 60m),
- 48m @ 30.5% Fe (RDY004 from 100m), and
- 36m @ 29.6% Fe (RCY016 from 24m).
In 2010 Giralia engaged CSA Global to complete a maiden JORC 2004 compliant resource estimate for the Yerecoin Main and Yerecoin South deposits. Pre-Feasibility metallurgical testwork, along with preliminary open pit optimisation work, and groundwater and environmental studies were commenced late in 2010, however in early 2011, Giralia was taken over by Atlas Iron Ltd, and the Yerecoin Project sold to Cliffs Natural Resources in 2012.
Cliffs Natural Resources (2012-2014)
As Operator of the Gunnel JV with Nippon Steel & Sumitomo Metals and Sojitz Corporation as partners, Cliffs Natural Resources (“Cliffs”) carried out further diamond drilling, and during 2013, the Gunnel JV completed broad-scale analysis of potential mining scenarios, based on the defined resources and those deemed implied to exist based on magnetic signatures. This work was not completed and required further work. The Gunnel JV also completed an extensive Scoping Study1 on a large scale 5Mtpa operation. Cliffs divested the Yerecoin project to Radar Iron Ltd in 2014.
Radar Iron Ltd (2014-2017)
Radar Iron Ltd (“Radar”) purchased the project from Cliffs in 2014 and later in that year reported an updated mineral resource estimate to comply with the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “2012 JORC Code, 2012 Edition”, or “JORC 2012”), using all historical RC and diamond drilling carried out by Giralia and Cliffs. Radar reported a total Magnetite Resource estimate of 246.7Mt @ 29.9% Fe head grade and 68.1% Fe DTR Concentrate grade comprising:
- Indicated Resources of 31.0Mt @ 37.4% Fe head grade and 67.7% Fe DTR Concentrate grade
- Inferred Resources of 215.7Mt @ 31.3% Fe head grade and 68.1% Fe DTR Concentrate grade
Radar carried out further scoping studies1 on a more modest scale operation targeting 250,000t of concentrate from 728,000t of mineralisation from the Yerecoin Main deposit. Radar also conducted engineering and transport logistics studies assessing the potential for economic mining, however due to market conditions at that time, the project was placed on care and maintenance. In mid-2016, Radar divesting of the Yerecoin project in 2017 to Novarange Pty Ltd.
1.Cautionary Statement – The Scoping Study referred to is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.
Yerecoin Iron Project Summary
Mineral Resource
- JORC 2012 compliant magnetite resources 247 Mt @ 29.9% Fe (68.1% Fe concentrate grade)
- Exploration drilling Programmes of Works granted by DMIRS for all three iron ore domains located within the Yerecoin Main Deposit Area/s
Table 1: Yerecoin Mineral Resource Estimate
1 The Yerecoin Main and South Mineral Resource Estimate was reported in 2014 under the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. The Mineral Resource Estimate was detailed in refer to Prospectus dated 27 May 2021 Section 10 for the Independent Technical Assessment Report.
2 The Company is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the data in the relevant market announcements continue to apply and have not materially changed.
Metallurgical Testwork
- Highly favourable metallurgical characteristics including excellent Fe recoveries at a coarse grind size of 106 micron (P80)
- Test work has indicated the potential to produce of a premium iron concentrate at
Infrastructure
- Multiple infrastructure options for exporting iron product
- The site is situated adjacent to sealed roads and a railway
- Both Kwinana and Geraldton Ports are within viable trucking distances
