The Grants iron ore project lies 8 km south of the Barrier Highway and the Transcontinental Railway, and one hour drive southwest of Broken Hill. A substantial magnetite-hematite iron ore deposit was defined during 2012 as the result of drilling laterite capped hills following discovery of subtle iron ore outcrop by Havilah geologists.
The deposit contains a JORC Inferred Resource of 304 million tonnes of 24% Fe at a cut-off grade of 18% Fe, with considerable remaining exploration upside potential.
Havilah’s drilling and 3D modelling has shown that the deposit forms a homogeneous hull-shaped body of iron ore up to 180 metres thick from surface and covering approximately 130 hectares, with minimal internal waste and almost no overburden. These factors highlight the extremely favourable open pit mining characteristics of the Grants iron ore deposit.
The iron ore appears to be geologically and mineralogically similar to Havilah’s nearby Maldorky iron ore deposit and other Braemar region iron ore deposits. This, combined with the favourable logistics and deposit mining geometry, means the deposit is well suited to a low cost open pit mining operation.
The Grants and Grants Basin projects lie only 8-10 km south of a continuous, heavy duty rail link to Spencer Gulf ports of Whyalla, Port Augusta and Port Pirie (and Port Waratah and Port Kembla in the east).
Through a series of transactions Havilah secured 100% ownership of the entire Grants Basin iron ore prospect (see aeromagnetic image below). A 14 hole drilling program at the western end of the Grants Basin identified an Exploration Target of 3.5-3.8 billion tonnes of 24-28% iron (noting that the Exploration Target is conceptual in nature and 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).
Drilling to date has discovered iron ore mineralisation over about 25% of the total area of the Grants Basin at “West End” and “South Flank”. As the name suggests the deposit looks to have a large basin shape, with the deepest hole so far being 624 metres, that includes a 488 metre continuous iron ore intersection grading 24.6% Fe.
The Grants Basin is an exciting new iron ore project of potentially very large dimensions (see image below where the Grants Basin extent, shown by the white line, is superimposed on Sydney Harbour).