Summary Of Mineral Resource Estimates

JORC Mineral Resource Estimate – Yerbas Buenas YB6 Iron Ore Project

Freehill Mining Limited completed its second major drilling program in December 2019 which focussed on the YB6 structure. The YB-6 anomaly is one of several geophysical anomalies identified at the project, the northern portion of which was drilled in late 2018 during the maiden drilling program.

MRE Classification

A Mineral Resource Estimate done by Geos Mining Mineral Consultants is compliant with JORC Code 2012 and applies only to the Yerbas Buenas No. 6 (YB6) structure.

The classification of the Mineral Resources considered qualitative and quantitative criteria, including the geological model, logging data, sampling techniques, data quality and distribution, variography, deleterious materials, and factors such as depth and level of oxidation. 

Based on these criteria, the total Mineral Resource for the YB-6 anomaly has been estimated at 49.3Mt @ 20.6% Fe, with a predicted pellet feed concentrate grade of 68.4% Fe as estimated from Davis Tube Recovery (DTR) analyses. A cut-off grade of 10% Fe was applied to the anomaly MRE.

Available sampling data was subjected to various statistical and geostatistical analyses to gain insight into mineralisation characteristics and quantify important parameters employed in resource estimation.  The depth extent of the block model was limited to the extent of the drilling and reached a maximum depth of -130 mRL or approximately 250 metres thick.

DV Drilling of Coquimbo, Chile were contracted by Freehill to supply two track mounted diamond drill rigs and drill 20 diamond holes for a total of 4,805 metres, with 18 of the holes (YB-025 to YB-042) targeting the YB-6 anomaly and the two other holes testing additional mineralisation at YB-1 anomaly (YB-043). Holes were drilled using NQ diameter core, although all of the drillholes commenced using HQ diameter core due to the loose nature of the sand cover.

JORC Mineral Resource Estimate Table

The review of the model found that the YB-6 anomaly consists of a series of intrusive localised diorite bodies within a sub-volcanic andesite host rock.  The mineralisation of YB-6 consists of widespread low-grade dissemination of magnetite throughout the andesite, as well as numerous localised medium to high-grade (massive) magnetite cross-cutting structures within the diorite intrusions as the main mineralisation event.

Due to the pervasive nature of the magnetite dissemination throughout the anomaly, along with the random nature of the cross cutting magnetite structures, it was decided not to constrain the block model geologically and to limit the ore block model with the drilling and the extent of the ground magnetic survey.

JORC Mineral Resource Estimate – Yerbas Buenas YB1 Iron Ore Project

Freehill Mining Limited completed its maiden drilling program in late December 2018 and announced a Maiden Mineral Resource Estimate 6th May, 2019.

The estimate is compliant with JORC Code 2012 and applies only to the Yerbas Buenas No. 1 (YB1) structure. The project area of 398 hectares contains 6 other magnetic structures which have had either limited or no drilling and not been classified yet.

Only approximately 9% of the projects magnetic structures area has been drilled to date.

Both Inferred and Indicated resource categories have been declared and are provided in the following table and show a total resource of 18.4Mt at 15.1% Fe

The resource model was constrained to 150m below surface and uses a cutoff grade of 10% Fe.

JORC Mineral Resource Estimate Table

YB1 trial mining pit area showing maiden drill holes used for JORC resource estimation

JORC Exploration Target – Yerbas Buenas Iron Ore Project


A Conceptual Exploration target was determined and released as part of an Operational Update 5th April, 2018.

The Exploration target does not constitute a Mineral Resource but only an estimate of exploration potential based on preliminary exploration activities and various assumed factors and for which there has been insufficient exploration to estimate a formal Mineral Resource.

Under the guidelines of the JORC Code 2012 it is quoted as a range of tonnes and a range of grades

The Yerbas Buenas Exploration Target total for each mineralised structure and total tonnes is shown in the following table.

The total tonnes shown for the YB1 anomaly aligns very well with the Total Tonnage (Mt) shown.

Conceptual Exploration Target Parameters

Exploration Targets

The company is committed to carrying out exploration on all its concession areas to increase shareholder value as quickly as possible.

 Structures within the Yerbas Buenas project area  that have already been drilled and have JORC Mineral Resource Estimates are shown with grades and tonnes, Yerbas Buenas conceptual exploration targets which are yet to be drilled shown and newly identified magnetic structures at El Dorado marked.