Ironback Hill
Ironback Hill Rare Earth Elements Project
100% MAGNETITE MINES OWNED
Discover the
Ironback Hill REE Project
Recent exploration work has identified near surface, clay hosted rare earth element mineralisation at the Ironback Hill Project in north east South Australia. The mineralisation was recognised through low cost re assaying of archived drill samples and represents a new critical minerals opportunity within Magnetite Mines Limited’s South Australian tenement portfolio.
The Ironback Hill Rare Earth Project is a 100 percent owned, early stage exploration project located within Exploration Licence EL 6126. The project lies adjacent to the Company’s Ironback Hill magnetite iron ore Mineral Resource and approximately 12 kilometres south of the Razorback Iron Ore Project, providing proximity to existing infrastructure and an established exploration and development footprint.
PROJECT HIGHLIGHTS
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Near surface, clay hosted rare earth element mineralisation identified through re assaying of archived drill samples.
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Multiple shallow intercepts reported above a 350 ppm TREO cut off, including higher grade zones exceeding 1,000 ppm TREO.
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New exploration licence EL7100 acquired adjacent to EL 6126, extending coverage of prospective drainage systems.
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Mineralisation interpreted to be regolith hosted and associated with local creek and drainage networks.
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Targeted, low impact air core drilling and early stage testwork planned to assess extent and characteristics of mineralisation.
Geology
Rare earth mineralisation at Ironback Hill occurs within shallow, oxidised clay and silt horizons developed above weathered basement and is commonly associated with local creek and drainage systems. The mineralisation is interpreted to be regolith hosted and spatially linked to areas of enhanced weathering and sediment accumulation.
The style of mineralisation is currently interpreted as clay hosted. The precise mineralogical deportment of rare earth elements, including the potential presence of an ion adsorption component, has not yet been confirmed and will be assessed through further mineralogical and metallurgical testwork.
Previous Work
Drilling at Ironback Hill was originally completed during 2011 and 2012 as part of iron ore exploration and resource definition within the Braemar Iron Formation. This program comprised a combination of reverse circulation and diamond drilling and was not designed to target rare earth elements.
As part of a recent review of historical datasets, archived clay rich samples from this drilling were selectively re assayed for rare earth elements. This work confirmed the presence of rare earth mineralisation within shallow clay horizons providing a foundation for further targeted exploration.
Re-assay results have returned multiple near surface intercepts above a reporting cut off of 350 parts per million total rare earth oxides. Reported intersections range from several metres to more than 20 metres downhole and include higher grade zones exceeding 1,000 parts per million total rare earth oxides. Neodymium oxide, a key rare earth magnet element, is a consistent component of the reported assemblage.
NEW TENEMENT GRANTED
BRAEMAR CREEK (EL7100)
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Adjacent to EL6126 (Ironback Hill)
license covers approximately 227km2
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Secures downstream drainage corridors
interpreted to be associated with the shallow, clay-hosted REE mineralisation previously reported at Ironback Hill.
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No exploration activities have yet taken place
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Planned objectives:
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Compilation and review of existing data
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Refinement of regolith and drainage-based REE targets
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Reconnaissance mapping and surface geochemical sampling along priority drainage systems.
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Potential follow up drilling
contingent on results of planned objectives above.
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Adjacent to EL6126 (Ironback Hill)
license covers approximately 227km2 -
Secures downstream drainage corridors
interpreted to be associated with the shallow, clay-hosted REE mineralisation previously reported at Ironback Hill. -
No exploration activities have yet taken place
-
Planned objectives:
-
Compilation and review of existing data
-
Refinement of regolith and drainage-based REE targets
-
Reconnaissance mapping and surface geochemical sampling along priority drainage systems.
-
Potential follow up drilling
contingent on results of planned objectives above.
THE RAZORBACK IRON ORE PROJECT REDEFINED
5 MILLION
tonne per annum - Stage 1
DR-Grade
Concentrate
In response to industry feedback and emerging market developments, in September 2022 Magnetite Mines announced its decision to increase the scale of the first stage of the Razorback Iron Ore Project to a minimum of five million tonnes of production per annum (“Mtpa”) and to assess a number of other Project enhancements including the production of DR-grade concentrates.
The strategic shift to a larger-scale, staged development of the Razorback Iron Ore Project represents a compelling opportunity to capitalise on its substantial resource base and the favorable mineral processing characteristics of Braemar ores.
The Project’s current Mineral Resource Estimate of over three billion tonnes, including two billion tonnes of Probable Ore Reserves, is based on a limited number of drilling programs. The majority of the Project’s 110km strike zone is largely underexplored.
10 MILLION
tonne per annum - Stage 2
Ironback Hill REE Project
Next Steps
Planned work at Ironback Hill includes targeted, low impact air core drilling designed to test the lateral and downstream extent of mineralisation along priority creek systems. This drilling will provide fresh samples for mineralogical and metallurgical testwork and improve understanding of geological controls on mineralisation.
Early stage bench scale testwork is planned to assess leachability under mild conditions, impurity behaviour and variability within the clay horizons. Results from drilling and testwork will be integrated into the Company’s geological model to guide future exploration and inform decisions on the scale and direction of further work.
Favourable Geology
The Razorback Iron Ore Project’s two key deposits, Razorback and Iron Peak, are part of the Braemar Iron Formation, a singular dipping tabular body with minimal structural complexity. The grades, thickness, dip and outcropping geometry of the Braemar Iron Formation are consistent over kilometres of strike. Research commissioned by the South Australian Government has estimated that the exploration potential of the Braemar region is over 50 billion tonnes based on existing mining tenements alone.
Braemar magnetite deposits, which consist primarily of siltstones, are notably softer than those in other iron ore producing regions in Australia and around the world, increasing grinding energy efficiency. In recent metallurgical test work, samples from the Razorback and Iron Peak deposits generated average bond ball work indices of 8.6kWh/t and 6.8kWh/t, respectively. Magnetite deposits hosted in banded iron formations, common to the Pilbara and Mid-West regions of Western Australia, have work indices in the order of 18-25kWh/t (i.e., 2 to 3 times higher).
The Razorback and Iron Peak deposits have negligible overburden (part of the resource outcrops) which is conducive to lower strip ratios and mining costs. In the interim economic update released to the ASX in June 2023, Magnetite Mines estimated a Life-Of-Mine strip ratio of 0.35 for a 91-year, 5Mtpa development at Razorback.
THE RAZORBACK IRON ORE PROJECT
The Power of Potential
The Razorback Iron Ore Project boasts excellent existing infrastructure, including proximity to highways, rail lines, and ports. This strategic location allows for efficient transportation of ore and potential access to 100% renewable energy from the South Australian grid by 2030. Additionally, the project aligns perfectly with the emerging green iron hub concept, positioning it for a sustainable future in the iron and steelmaking industry.
DR-Grade Potential at Razorback
Strategic Expansion for Success
Recognising the evolving market demands, Magnetite Mines strategically increased the initial production scale of the Razorback Project to a minimum of 5 million tonnes per annum (Mtpa) in September 2022. This strategic shift offers a multitude of benefits, including enhanced project economics through economies of scale and wider premiums for high-grade products.
Furthermore, the larger production scale makes the project more attractive to potential partners, customers, and financiers. Additionally, the expansion aligns with the project's significant Mineral Resource Estimate and paves the way for the potential re-estimation of Ore Reserves. It also opens doors for the electrification of key equipment, further solidifying the project's environmental credentials.
Rigorous Studies Validate Project Viability
In September 2022, Magnetite Mines launched Optimisation Studies to redefine the project's scope based on the new 5Mtpa target. These studies built upon the extensive work completed for the previous 2.5Mtpa feasibility study, successfully confirming the viability of the expanded project. They were finalized on schedule in March 2023.
Substantial Resource Upgrade
The comprehensive studies undertaken in 2023, including the additional testwork, culminated in a phenomenal 418% increase in the project's Probable Ore Reserves. This translates to a significant jump from 473 million tonnes to a staggering 2 billion tonnes! This includes a maiden Probable Ore Reserve of 362 million tonnes for the Iron Peak deposit. These updated estimates were derived from an open pit optimisation and incorporate the newly expanded Mineral Resource Estimate which now stands at an impressive 3.3 billion tonnes.
With its unique advantages, scaled-up production, and high-grade potential, Magnetite Mines' Razorback Iron Ore Project is poised to become a significant player in the iron ore industry.
Unlocking High-Grade Potential and Flexibility
As part of the optimisation studies, Magnetite Mines commissioned additional metallurgical testing using new ore samples obtained through their 2022 drilling program. This testing, conducted by industry leaders, validated the project's ability to produce 5Mtpa of high-grade iron ore throughout its lifespan.
Notably, the testing revealed the remarkable potential to produce ultra-high grade 70% Fe concentrates from specific Iron Peak samples, boasting a combined silica and alumina level of just 2.6%. This demonstrates the processing flowsheet's flexibility to adapt to market demands.
Disclaimer
The Ironback Hill Rare Earth Project is at an early stage of exploration. The information presented on this page relates to exploration results only and is based on limited sampling, historical drill data and early stage assessment work. Reported intercepts represent downhole lengths and true widths are not known. The extent, continuity and grade of the mineralisation have not been established and no Mineral Resource or Ore Reserve has been defined.
Further exploration, drilling, mineralogical and metallurgical testwork is required to determine the nature, extent, extractability and potential economic significance of the mineralisation. There is no certainty that further work will result in the definition of a Mineral Resource or that the project will be developed.
All exploration activities and public reporting are conducted in accordance with the ASX Listing Rules and the JORC Code (2012).