Equinox Resources announces updated DSO estimate for Hamersley iron ore project
Equinox Resources (ASX: EQN) has updated the inferred mineral resource estimate for direct shipping ore (DSO) from its wholly-owned Hamersley iron ore project in Western Australia.
The large-scale, high-grade estimate totals 108.5 million tonnes at 58% iron and is believed to be very similar in grade to the Pilbara fines product sold into Asian markets from neighbouring operations.
The update follows a reinterpretation and reassessment of the project’s mineral resources by geological consultant CSA Global and highlights significant hematite mineralisation across the acreage.
Extensive data
The reassessed information included 22,621 metres of historical drilling, assays, geological modelling, metallurgical test work and geophysical data.
It has been reinterpreted to enhance the geological characterisation and lithological domaining of the deposit.
The Hamersley resource is located 30 kilometres south of Fortescue’s (ASX: FMG) Solomon mining hub, which is currently producing 70Mt per year at a grade of 56.9% iron.
Worthwhile exercise
Equinox managing director Zac Komur said the reassessment exercise had reaped rewards for the company.
“By reassessing the resource and collaborating with our geological team, we have been able to unlock a clearer understanding of Hamersley’s true economic potential while revealing unprecedented exploration upside,” he said.
“This updated estimate lays the groundwork for targeting the higher-grade region of the Hamersley ore body and will pave the way for a comprehensive project scoping study.”
DSO mineralisation
The DSO mineralisation at Hamersley starts approximately 20m below the surface and is likely to be easy to mine, given the uniform nature of the deposit with no deleterious material present.
Mr Komur said there was significant potential to grow the DSO material, as evidenced by a previous drill hole that ended in mineralisation of 61.6% iron.
The company has planned an infill Phase 1 drilling programme of approximately 3,300m to commence later this year in the high-grade section of the ore body.
Metallurgical test work has shown that once the ores have been screened and scrubbed, the iron grades could potentially be upgraded to between 60% and 62%.