Freehill Mining (ASX: FHS) has revealed the much-anticipated assay results from its maiden drilling campaign at Yerbas Buenas in Chile, with the program unearthing up to 70% iron.
The 70% iron was found in drill hole YB016 and extended from a 26m depth to 30m. The higher-grade zone was within a 172m intersection that graded 24.4% iron from 14m. Other higher-grade intervals within YB016 included 38m at 41.7% iron, and 16m at 61% iron.
Another highlight from the drilling program was an 18m intersection of near pure magnetite grading 63% within 50m of surface.
Commenting on the results Freehill chief executive officer Peter Hinner said the assays were “outstanding”.
“These assay results are a major milestone and value catalyst for Freehill as they unlock a great deal of Yerbas Buenas’ value.”
“We have now demonstrated that the magnetic targets identified by geophysics and now drilling contain a high-quality magnetite suitable for the large, local pellet feed plant owned by Chile’s largest iron ore producer Campania Minera del Pacifico.”
Exploring Yerbas Buenas
Assays were from the first six holes of a 4,300m reverse circulation program that was completed in December last year.
A total of 24 holes were carried out across the YB1, YB3 and YB6 targets.
Drilling was completed in and around the project’s trial mining pit and covered 1.1km of strike within a 2.3km magnetic structure.
At the YB6 structure, substantial sections of almost pure magnetite had been recovered under very little overburden.
Meanwhile, metallurgical test work on 30.5% iron sample using the Davis Tube recovery method has shown about 35 tonnes of magnetite could be recovered to a high grade fine out of every 100t of material mined and processed.
“Yerbas Buenas is shaping up as a significant Chilean magnetite project with established offtake agreements and third-party processing operations available to us only 35km from site,” Mr Hinner said.
“We look forward to reporting a JORC mineral resource estimate during March and also updating our conceptual exploration target,” he added.