The Grants iron ore basin looks very interesting, kudos to HAV Management for securing all the pieces of the puzzle to the basin. The last pieces were acquired from Minotaur (MEP) for $110,000 during the last quarter and new EL application 2017/00117.
Grants iron ore got zero discussion on this forum. So, I thought I would open it up for discussion.
Grants Iron Ore
The Grants iron ore discovery is a unique and valuable iron ore deposit.
Grants contains an Inferred Resource of 304Mt of 24% iron (at a cut-off grade of 18% Fe), or 100 million tonnes (~33% estimated yield) of premium grade iron with >60% Fe with very low levels of impurities.
Grants is an attractive mining proposition owing to the fact that the deposit starts at surface and extends up to 180 metres depth in a single solid mass of essentially flat lying iron ore, with no overburden and minimal internal waste, within 10 km of a rail line.
The Grants deposit is approximately 2.250 metres long and 700 metres wide and covers an area ~130 hectares. Of this, roughly 35Ha of the deposit, equating to ~100 million tonnes is located within Havilah's 100% owned EL and the balance of ~204 million tonnes is within the adjoining EL 5393 farm-in, where Havilah is earning 75% from the Exco joint venture.
There is still considerable remaining exploration upside potential at Grants. The potential area is 'elephant' size, within the 10 km x 6 km Grants iron ore basin.
Extract from 31 July 2017 ASX Quarterly Report
During the quarter, Havilah secured control over the complete area of the very large fault-controlled Grants iron ore basin with acquisition of EL5848 from Minotaur Resources and new EL application 2017/00117.
The basin is unique for its large size, absence of overburden and almost flat lying occurrence of the Braemar Iron Formation that appears to have formed in a shallow fault-controlled depression in the Broken Hill age bedrock.
Havilah plans to carry out reconnaissance drilling in the future to determine the regional extent of the basin and the thicknesses and grades of iron ore across it. [As I understand it, this may take place later in the calendar year]
Initial results from drilling of the Grants resource at the very western tip of the basin are considered to be promising for discovery of an extremely large resource, which conceivably could host areas of higher grade iron mineralisation where the sedimentary depositional conditions were particularly favourable.
Waterless Ore Processor Improves Mining Efficiency
Former chairman at Havilah Resources, Maptek founder, and large HAV shareholder Bob Johnson said waterless ore processing (called a Cyclomag) was a massive benefit for the industry. Great news for the economics of Havilah's Maldorky and Grant iron ore projects, and a reason why he was at the presentation.
“Water is a precious resource and expensive to manage when you think of the pipelines, bore fields and infrastructure you need,” Bob Johnson said.
“Crushing ore to such a small size and doing it without ball mills and water is a breakthrough for the industry.”
The demonstration system (see article above) can process up to 170 kilograms of magnetite per hour but Kelsey plans to upscale the system to a commercial level.
The Cyclomag has been developed by IMP Technologies (IMPTEC) in South Australia and works in conjunction with the company’s Super-Fine Crusher to deliver enhanced iron content with fewer impurities:
Both the waterless ore processor and super-fine crusher, if they can be commercially upscaled, could be used at Grants (and Maldorky and Lilydale) to enhance the iron ore content.
Grants Iron Ore YouTube Video
It forms a large keel-shaped slab of iron ore that has a vertical thickness of up to 180m from surface in its central part. Geologically, it is very similar to Havilah's Malarky iron ore discovery but lies only 10 km from the transcontinental railway line.
'Twiggy' Forrest/ Sanjay Gupta
Recently, I have suggested in writing to Dr Giles that we get at least one of the above business people involved in either Grants and/or Maldorky.
Either one could then farm-in to Havilah's ELs, then form a joint venture with Havilah and Washington H Soul Pattinson (which owns Exco Resources, the holder of 25% of EL5393).
As a shareholder in HAV, I would be more than happy for FMG to operate Grants iron ore on behalf of the JV, given its vast experience in iron ore development, production and selling.
Iron Ore Prices
Steel makers’ preference for high-grade ore is increasingly structural, reflecting the growing need to improve productivity and curb emissions. The price recently commanded by premium-grade ore (65% Fe) is more than double that of low-grade ore (58% Fe), with 62% Fe sitting in between.
Steel makers’ demand for higher productivity, stricter environmental monitoring and general shift to larger furnaces has resulted in increased demand for higher quality iron ore and energy inputs, which has been reflected in increasing iron ore quality differentials.
Maldorky sits at a premium grade of 65% Fe after beneficiation. Grants sits at a grade of >60% Fe.
Cheers
These are only my random thoughts (but one to watch going forward) and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional expert
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