Havilah Resources has reported the discovery of a significant iron ore deposit in the Grants Iron Ore Basin in South Australia.
GFG Alliance’s SIMEC Mining has performed and funded a drilling program at Havilah’s Maldorky and Grants iron ore projects as part of a commercial agreement between the two companies.
A reverse circulation (RC) drilling program has intersected consistently thick iron formation in multiple drillholes over an area of at least 3.5 square kilometres in the western part of the basin, according to Havilah.
The thickest drill intersection of 297 metres (at 20.6 per cent iron) ended in mineralisation.
Havilah technical director Chris Giles said the drilling program confirmed the original exploration concept for the existence of a thick, relatively shallow, iron formation.
“The beauty is that the deposit starts near surface, lies only 11 kilometres from the Transcontinental Railway line and is just over a one hour drive from Broken Hill, which makes it uniquely favourable for development,” Giles said.
“At this stage we can only guess at the potential size of the deposit, but based on the thickness of the iron formation and its areal extent, it is apparent that there exists significant resource potential.”
Havilah’s projects are positioned favourably with GFG’s Whyalla operations, including the continuous rail link to port.
The commercial agreement between SIMEC and Havilah is based on results of due diligence studies and finalisation of a mutual deal structure and terms.
Giles said the iron-rich latertised cap on the deposit was mined from the Grants quarries by BHP in the 1890s as flux for the Broken Hill smelters. The primary iron deposit has, however, lain essentially unrecognised until now.
“Havilah’s recognition of the exploration potential and patience in accumulating all of the ground covering the Grants Iron Ore Basin over a period of seven years, has finally been rewarded with these substantial drilling results,” Giles said.
So far, the drilling program has only covered 25 per cent of the interpreted Grants Iron Ore Basin.