Freehill Mining Announces Findings Of Over 63% Iron At Yerbas Buenas

Freehill Mining Limited (ASX: FHS) announced about its intersection of more than  63% Fe within 50 meters of the surface at Yerbas Buenas. The results were identified as outstanding at the maiden drill program at the flagship Yerbas Buenas magnetite project in Chile. As reported, 4,300 meters of Reverse Circulation (RC) drilling program was completed on 11 December with holes ranging from 150 meters to 250 meters in depth.

Assay results have been received for the six holes that have been drilled at the YB6 structure. Key highlights from the first set of assays include hole ids with Hole YB013 at an interval of 12 meters within the intersection range of 32 meters-44 meters contains 37.1% Fe, Hole YB014 at interval of 14 meters within the intersection range of 6 meters-20 meters contains 19.8% Fe. The Hole YB015 at interval 8 meters within the intersection range of 10 meters to 18 meters contains 27.2% Fe; this hole includes interval at 28 meters with the intersection between 34 meters and 62 meters contains 37.4% Fe and interval at 56 meters with the intersection between 8 meters-64 meters contains 25.2% Fe. The Hole YB016 at interval 172 meters within the intersection of 14 meters-186 meters contains 24.4%Fe. This hole includes interval at 38 meters with the intersection between 14 meters-52 meters contains 41.7% Fe, the interval at 16 meters with the intersection between 20 meters-36 meters contains 61.0 % Fe, and the interval at 16 meters with the intersection between 36 meters-52 meters contains 29.4% Fe. The Hole YB022 at interval 38 meters within the intersection range of 12 meters-50 meters contains 19.9% Fe.

Exploration was confined to the southern portion of the project area with drilling focusing in and around the trial mining pit area and confirming magnetite mineralization within several identified magnetic structures to the immediate north and south of the pit that form part of a contiguous elongated magnetic structure 2.3 kilometers long. The structure is open at both the northern and southern boundaries of the project tenement. Drilling covered some 1.1 kilometers of strike along the southern portion of the main 2.3 kilometers structure.

Drilling of the YB6 structure include substantial sections of almost pure magnetite, confirms that the structure is mineralized with magnetite iron ore, shows the structure appears to thicken and widen in a southward direction. The magnetite is of high quality, low impurity suitable for pellet feed production, and the structure has very little overburden.

Hole YB016 contains 22 intervals of lower grade intersections, and if these are classified as an inter-burden and removed from the downhole average, then the average grade of the remaining 142 meters from 14 meters-186 meters becomes 30.5% Fe.

Detailed test work carried out by Freehill at Intertek laboratory has shown that a total iron content of 30.5% Fe would provide a 38% mass recovery using the standard Davis Tube Recovery (“DTR”) method commonly used for magnetite assessment.

It means that for every 100 tonnes of material that could be mined and processed approximately 35 tonnes of magnetite could be recovered to an excellent high-grade product.

The average Davis Tube magnetic concentrate grade derived from those tests provides a good indication of the quality of a potential pellet feed using Yerbas Buenas mine concentrates.

At the time of writing (AEST 4:00 PM, 05 March 2019), Freehill mining’s shares traded at $0.019 up 26.667% with the market capitalization of ~$9.88 Mn. Its loss per share was last reported at 0.008 AUD. Its 52 weeks high has been noted at $0.081 and 52 weeks low at $0.011. Its absolute return for 3 months and 1 year is -25%, and -80.39% respectively.


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