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Equinox Resources Limited (ASX: EQN) (“Equinox Resources” or the “Company”) is pleased to announce a Mineral Resources Estimate (“MRE”) for Direct Shipping Ore (“DSO”) for the 100% owned Hamersley Iron Ore (“Hamersley” or “Project”) of 108.5Mt at 58% Fe1.
- Equinox has defined a large-scale, high-grade Direct Shipping Ore (DSO) component of its wider Iron Ore Resource, totaling 108.5Mt at 58% Fe.
- Equinox’s DSO Inferred Mineral Resource Estimate (MRE) is very similar in grade to the Pilbara fines product from the region sold to Asian markets.
- The resource is strategically located in the infrastructure-rich Pilbara region of Western Australia, approximately 30 km south of Fortescue Metals Group's Solomon Mining Hub (ASX: FMG) currently producing ~65 to 70Mtpa at 56.9% Fe.
- The DSO mineralisation starts ~20 meters below surface and is likely to be easily mineable given the uniform nature of the deposit with no deleterious material present.
- There is significant exploration upside potential to grow the DSO material, as evidenced by drill hole PLRC0167 which ended in mineralisation of 61.6% Fe.
- An infill Phase 1 drilling program of approximately 3,300 meters is planned for H2 CY2024 in the high-grade region of the orebody.
- Metallurgical testwork shows that post-screening and scrubbing, the iron grades can upgrade to approximately 60% to 62% Fe.
- Importantly, this JORC compliant MRE, sits on a mining lease with a native title agreement in place and could be rapidly developed against the backdrop of a high iron ore price environment.
- The initial DSO MRE is one of the largest undeveloped hematite detrital resources in the Pilbara, wholly owned by an ASX-listed junior company.
Equinox Resources Managing Director and CEO, Zac Komur, commented:
“At Equinox Resources, we're committed to advancing the Hamersley Iron Ore Project with a clear focus on accelerating its exploration and development. The reinterpretation of the Mineral Resource Estimate confirms an initial Direct Shipping Ore of 108.5 Mt at a grade of 58.0% Fe targeting the Platts 58% Fe Index and highlighting significant hematite mineralisation. By reassessing the resource and collaborating closely with our geological team, we've unlocked a clearer understanding of its true economic potential, whilst revealing unprecedented exploration upside.
This MRE update lays the groundwork for targeting the higher-grade region of the ore body. Our Phase 1 drilling program for the second half of CY2024 is set to unlock this higher-grade region, further enhancing the resource volume and grade.
These strategic efforts will pave the way for a comprehensive scoping study. This study will thoroughly evaluate alternative valuation scenarios, considering both the MRE for 58% Fe and a +60% Fe market index, with our decisions driven by a commitment to maximising value for shareholders.”
Figure 1: Location map showing Hamersley Iron Ore Mining Lease in the Pilbara Region of Western Australia
Significant Undeveloped Pilbara Hematite Detrital Project
Equinox Resources has released a DSO MRE as part of the development of the Hamersley Iron Ore Project. This MRE incorporates the results of a recent geological re-interpretation of the deposit conducted by ERM Australia Consultants Pty Ltd, trading as CSA Global, the Company's geological consultant.
The Hamersley Iron Ore Project is supported by a comprehensive knowledge base, including 22,621 meters of historical drilling, assays, geological modelling, metallurgical testwork, and geophysical data. This data has been re-interpreted to enhance the geological characterization and lithological domaining of the deposit.
The initial DSO MRE for the project represents one of the largest undeveloped hematite detrital resources in the Pilbara, wholly owned by an ASX-listed junior iron ore company. With a target grade of 58% Fe, the project can produce a DSO iron ore product that is saleable in the current market.
Click here for the full ASX Release
This article includes content from Equinox Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Types of Iron Ore: Hematite vs. Magnetite
What is hematite ore?
Hematite ore, also called direct-shipping ore, has naturally high iron content suitable for steelmaking. Because of its high iron content, hematite ore must undergo only a simple crushing, screening and blending process before being shipped off for steel production. For that reason, hematite ore is important for many mining companies.
Hematite ore is found throughout the world, with major production hotspots being Australia, Brazil, China and India.
In Australia, hematite has been the primary type of iron ore mined since the early 1960s. Nearly all of Australia's iron ore exports are high-grade hematite ore, and the majority of its reserves are located in the Hamersley mountain range of Western Australia because the range sits on a banded iron formation.
BHP (ASX:BHP,LSE:BHP,NYSE:BHP) is Australia’s leading iron ore producer and has several mining and processing hubs in Western Australia. Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) is also a major iron ore producer in the country, especially in the Pilbara region. One of its key iron producing operations is the Hope Downs iron ore complex, a 50/50 joint venture with Gina Rinehart's Hancock Prospecting.
Brazil is another of the world’s main sources of hematite ore. The country's Carajás mine, operated by major miner Vale (NYSE:VALE), is the largest iron ore mine in existence. Vale consistently ranks among the world's five largest mining companies and is the world's biggest producer of iron ore pellets. Its primary iron ore assets are in the Iron Quadrangle region of Brazil's Minas Gerais state.
A great deal of hematite ore is also mined in China. Known reserves include the Tung-Yeh-Chen and Dongye hematite ore deposits.
What is magnetite ore?
Mishainik / Adobe Stock
The mineral magnetite is a highly magnetic mineral found in solid and crystal forms. Magnetite actually has higher iron content than hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore tends to hold low concentrations of the mineral magnetite. As a result, this type of iron ore ore must be concentrated before it can be used to produce steel. Magnetite ore’s magnetic properties are helpful during this process.
Magnetite ore may require more treatment than hematite ore, but end products made from magnetite ore are typically of higher quality than those made from hematite ore. That’s because magnetite ore has fewer impurities than hematite ore; in this way, the elevated cost of processing it can be balanced out.
Magnetite ore is currently mined in Minnesota and Michigan in the US, as well as in taconite deposits in Eastern Canada. A major mining site in Michigan is the Marquette Range, which hosts four types of iron ore deposits, including both magnetite and hematite ore.
In Minnesota, magnetite ore is mined mainly in the Mesabi Range, one of the four ranges that make up the state's Iron Range. Cleveland-Cliffs (NYSE:CLF) is a major player in the magnetite ore industry and the largest iron ore pellet producer in North America. Its Hibbing Taconite joint venture in Minnesota’s Mesabi Range has an annual capacity of around 7 million metric tons of magnetite ore.
In Canada, many mining companies focus on exploration and development in the iron-rich Labrador Trough, which runs through parts of the provinces of Québec and Newfoundland and Labrador.
This is an updated version of an article first published by the Investing News Network in 2013.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
