Additional High-Grade Extensions Identified at Iron Ridge
ASX Announcement 5 February 2019
Highlights
- The Company has received the final assay results from the drilling program at the Iron Ridge Project. New results include:
- 58.2m @ 66.6% Fe from 79.3m in hole IR002
- 70m @ 64.4% Fe from 91m in hole IR004
- 51.1m @ 65.9% Fe from 161m in hole IR005
- 51m @ 63.9% Fe from 36m in hole IR001
- 16.2m @ 65.9% Fe from 41m in hole IR006
- 22.7m @ 62.9% Fe from 50m in hole IR003
23m @ 67.8% Fe from 159.2m in hole IR003 - 38.9m @ 66.7% Fe from 211m in hole IR033D
- 39.7m @ 65.9% Fe from 73.8m in hole IR020
- Many of the assay results represent extensions at depth to the existing JORC Inferred Mineral Resource, which is currently from surface to a maximum of 110m deep.
- Numerous high-grade Fe intercepts accompanied by low impurity levels of SiO2, Al2O3& P
- Metallurgical testwork, including a determination of lump to fines ratio, due to commence on diamond core in the coming week
- Updated Mineral Resource Estimate commenced, with an updated Estimate expected in 4-6 weeks
Exploration Update
The Directors of Fenix Resources Limited (ASX: FEX) (Fenix or the Company) are pleased to announce that the Company has received the last of the assay results from its recently completed drilling program at its flagship Iron Ridge Project in the Mid-West region of Western Australia (Table 1 & Figure 1).
Assay results from eight diamond holes for 1,210m of diamond core (Table 2 & Table 3) have been received. Interpretation of assay results in the vicinity of the current Inferred Mineral Resource (ASX announcements: Significant High-Grade Iron Ore Intersected at the Iron Ridge Project, 23 January 2019 and Drilling at Iron Ridge Project Provides Encouraging Initial Results, 17 January 2019) have confirmed the previous high-grade hematite zone results (64-67% Fe) in the Main BIF unit and the lower grade (57-63% Fe) Little BIF unit to the south (Table 2). The focus of the current drill program was the hematite zone in the Main BIF, targeting its high iron grades and low level of deleterious elements (Table 3).
The latest results continue to display consistent high grades in the Main BIF unit with a further eight separate intercepts of between 16m and 70m grading >63.9% Fe. This is in addition to the nine significant intercepts previously reported.
The Iron Ridge Project hosts an existing Inferred Mineral Resource of 5.0Mt at 64.1% Fe (Refer ASX announcement by Emergent Resources: Acquisition of High-Grade DSO Hematite Iron Project, 7 May 2018)1 , based on previous drilling conducted by Atlas Iron in 2008. The recent drill program was designed to improve the confidence level of the Mineral Resource to Indicated category, in addition to testing strike and depth extents to the mineralisation. Figures 2, 3, 4 and 5 illustrate typical sections with significant intercepts beneath the present depth extent of the Mineral Resource.
Figure 1: Drill Hole Location Plan
The drilling has identified a shallow south-westerly plunge component to the mineralisation. It explains why some of the drilling to the north-east either missed the mineralisation or only hit thin intersections.
It opens up the prospectivity of the western end of the deposit with high-grade intercepts up to 220m below surface projected to extend to near-surface. These near-surface expressions of the mineralisation are currently undrilled as they lie within the perimeter of the heritage exclusion zone.
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2018
ASX Announcement 31 January 2019
Highlights
- $4.5 million Prospectus offer successfully completed
- 3,534m of reverse circulation and 1,210m of diamond drilling completed at the Iron Ridge Project
- High-Grade Iron Ore assays received at the Iron Ridge Project including:
- 70m @ 64.8% Fe from 72m in hole IR011
- 66m @ 66.2% Fe from 80m in hole IR015
- 58m @ 66.7% Fe from 84m in hole IR018
- 52m @ 66.2% Fe from 130m in hole IR035
- 56m @ 63.6% Fe from 54m in hole IR017
- 50m @ 66.6% Fe from 152m in hole IR016
- 40m @ 65.6% Fe from 164m in hole IR012
- 20m @ 65.9% Fe from 70m in hole IR022
- 46m @ 66.3% Fe from 206m in hole IR036
- 26m @ 65.6% Fe from 74m in hole IR046
- Numerous high-grade Fe intercepts accompanied by low impurity levels including SiO2, Al2O3 & P
- Assay results from all diamond drilling remain pending (approximately 300 samples of HQ core)
- Metallurgical testwork, including a determination of lump to fines ratio, due to commence on Diamond Core in the coming weeks
Western Australian developer and explorer Fenix Resources Limited (Company) is pleased to report on its activities for the December 2018 quarter.
Maiden Drill Program at Iron Ridge Project Commenced
During the quarter Fenix received all necessary approvals to commence a combined diamond and RC drill program at its flagship Iron Ridge Project in the Mid-west region of Western Australia. The drill program was designed to test the depth and strike extent of the existing Inferred Resource of 5.0Mt at 64.1% Fe1 , as well as increase the confidence level of the Resource to Indicated category.
CSA Global Pty Ltd (CSA Global) had previously prepared documentation to allow the Mineral Resource to be reported in accordance to the JORC Code (2012 Edition)1 status and subsequently completed an Exploration Target of 0.6Mt to 7.1Mt of predominantly hematite mineralisation in a grade range of between 64.1% Fe and 65.3% with low deleterious elements, and a further 0.1Mt to 5.7Mt of goethite mineralisation grading 58% to 59.5% Fe with slightly elevated deleterious elements (Refer ASX announcement of 7 May 2018).
Please note that the potential quantity and grade of this Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The exploration target is based on historical exploration results as well as a field visit conducted by CSA Global in 2018.
Figure 1: Drill Hole Location Plan
A reduced number of RC metres were drilled than originally planned as the anticipated north-eastern strike extensions did not eventuate, however additional RC metres were drilled to the west as extensions to the mineralised zone were identified. Additionally, some holes had to be abandoned prematurely due to drilling difficulties arising from water ingress and trouble air lifting the high-density hematite intersected in some of the deeper holes.
Subsequent to the quarter, the Company advised it had received all the assay results from the 21 RC holes drilled in two batches (the first batch of results was announced 17 January and the second batch on 23 January 2019).
Significant High-Grade Iron Ore Intersected at the Iron Ridge Project
ASX Announcement 23 January 2019
Highlights
- The Company has received the assay results from the remainder of the RC drilling program at the Iron Ridge Project. Results include:
- 70m @ 64.8% Fe from 72m in hole IR011
- 66m @ 66.2% Fe from 80m in hole IR015
- 58m @ 66.7% Fe from 84m in hole IR018
- 52m @ 66.2% Fe from 130m in hole IR035
- 56m @ 63.6% Fe from 54m in hole IR017
- 50m @ 66.6% Fe from 152m in hole IR016
- 40m @ 65.6% Fe from 164m in hole IR012
- 20m @ 65.9% Fe from 70m in hole IR022
- 46m @ 66.3% Fe from 206m in hole IR036
- 26m @ 65.6% Fe from 74m in hole IR046
- Many of the assay results represent extensions at depth to existing JORC Inferred Mineral Resource
- Numerous high grade Fe intercepts accompanied by low impurity levels including SiO2, Al2O3& P
- Assay results from all diamond drilling remain pending (approximately 300 samples of HQ core)
- Metallurgical testwork, including a determination of lump to fines ratio, due to commence on Diamond Core in the coming weeks
- Current iron ore lump premium is US38.5 cents per dry metric tonne unit, which is equivalent to a 31.5% premium to similar grade fines product (US$23.87/t for 62% Fe)1.
Exploration Update
The Directors of Fenix Resources Limited (ASX: FEX) (Fenix or the Company) are pleased to announce that the Company has received the remainder of the assay results from 12 RC holes from the total RC component (21 holes for 3,534m) of the drilling program completed at its flagship Iron Ridge Project in the Mid-West region of Western Australia (Figure 1).
Assay results from eight diamond holes for 1,210m of diamond core (Table 1 & Figure 2) remain pending. Interpretation of current assay results in the vicinity of the current Inferred Mineral Resource have confirmed the previous high grade hematite zone results (64-67% Fe) in the Main BIF unit and the lower grade (57-63% Fe) Little BIF unit to the south (Table 2). The focus of the current drill program was the hematite zone in the Main BIF, targeting its high iron grades and low level of deleterious elements
These latest results illustrate the consistent high grades in the Main BIF unit with nine separate intercepts of between 20m and 70m grading >64.8% Fe. This is in addition to the two wide, high-grade intercepts of 46m @ 66.3% Fe and 58m @ 66.7% Fe announced previously (ASX announcement: Drilling at Iron Ridge Project Provides Encouraging Results, 17 January 2019).
The Iron Ridge Project hosts an existing Inferred Mineral Resource of 5.0Mt at 64.1% Fe (ASX announcement by Emergent Resources: Acquisition of High-Grade DSO Hematite Iron Project, 7 May 2018), based on previous drilling conducted by Atlas Iron in 2008. The recent drill program was designed to improve the confidence level of the Mineral Resource to Indicated category whilst also testing strike and depth extents to the mineralisation. Figures 2 and 3 illustrate typical sections with significant intercepts beneath the present depth extent of the Mineral Resource.
The Company now awaits assay results for all of the 297 diamond core samples. These diamond holes targeted the same mineralisation as the RC holes with the core also intended to be used for metallurgical and geotechnical testwork.
We expect results from the metallurgical testwork to be available in February and a new Mineral Resource to be completed in March 2019.
Figure 1: Drill Hole Location Plan Click here to view the full announcement
Director Profiles
Robert Brierley
Executive Director
Mr Brierley holds a Bachelor of Engineering (Mining Engineering) and a Graduate Diploma in Applied Finance and Investment. He is experienced in project and mine management, corporate finance, leadership, corporate governance and equities research. Mr Brierley has significant experience in many mining operations, including acting as Registered Mine Manager/Quarry Manager at several iron ore mines including Yandi, Marandoo and Koolan Island.
Additionally, he has over 13 years of experience in financial markets, predominantly as Head of Equities Research. It is expected that Mr Brierley will be at the forefront of the Company’s fundraising whilst also progressing the Company’s development of the high-grade Iron Ridge iron ore deposit.
Mr Brierley is a Graduate Member of the Australian Institute of Company Directors. He has had previous executive and non-executive roles with Brockman Resources Ltd (ASX: BRM), Alchemy Resources Ltd (ASX: ALY), BrazIron Ltd (ASX: BZL) and Carbine Resources Ltd (ASX: CRB).
Garry Plowright
Executive Director
Mr Plowright is an experienced executive with over 25 years’ experience in finance, commercial and technical development within the mining and exploration industry, working for some of Australia’s leading resource companies. He had been involved in gold, base metals and iron ore exploration and mining development projects in Australia and worldwide.
Previous experience with the supply and logistics of services to the mining and exploration industry including capital raising, corporate governance and compliance, project management, mining and environmental approvals and regulations, contract negotiations, tenure management, land access, stakeholder and community engagement. Mr Plowright has extensive experience in mining law and has provided services to the industry in property acquisitions, project generation and joint venture negotiations.
Mr Plowright has held global operational and corporate roles with Gindalbie Metals Ltd, Mt Edon Gold Ltd, Pacmin Mining, Atlas Iron Ltd, Tigris Gold (South Korea) and Westland Titanium (New Zealand). He has a strong background in strategic management, business planning, building teams, capital/debt raising, and experience with a variety of commodities.
Bevan Tarratt
Non-Executive Chairman
Mr Tarratt has an extensive background in capital markets, accounting and corporate advisory with a specific focus on small cap Australian equities. Mr Tarratt was previously a client advisor at Patersons Securities and partner of a venture capital firm. He has been involved in the re-capitalisation, restructuring and acquisition of assets for numerous ASX listed companies.
In the last three years Mr Tarratt has been a director in the following other ASX listed companies – Pura Vida Energy NL (ASX:PVD): 1 August 2011 to 13 January 2014 and then from 25 may 2018 to present, Protean Energy Ltd (ASX:POW) : 12 June 2007 to present.
Petar Tomasevic
Non-Executive Director
Mr Tomasevic has significant experience in the financial services industry having worked with numerous ASX listed companies in marketing and investor relations roles. Whilst engaged by Stocks Digital, a leading Australian marketing firm, he specialized in digital marketing strategies and investor relations.
Mr Tomasevic has substantial practical business knowledge and was the former Managing Director of an international sports manufacturing company. In addition to his business acumen, Mr Tomasevic was a professional athlete for 10 years and was part of the Rio 2016 French Olympic Team.
Mr Tomasevic is fluent in 5 languages and is currently appointed as a French language specialist to assist in project evaluation for various ASX listed junior explorers.
