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MINERAL RESOURCES &

ORE RESERVES

A targeted and methodical exploration programme has progressively increased the iron ore resource base since drilling commenced in 2005. 

The current resource base for the project exceeds 2.5 billion tonnes, comprising channel iron, detrital and bedded iron deposits as detailed below.

Mineral Resources

Resource Statement as of June 2015

Project Mineral Resources (JORC) for the West Pilbara Iron Ore Project (WPIOP) totals 2.57Bt (inclusive of Ore Reserves).

West Pilbara Iron Ore Project - Stage 1

West Pilbara Iron Ore Project (Channel Iron Deposits) Stage 1

JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
WPIOP - Total Measured 385 57.4 5.83 3.21 8.19 0.098
  Indicated 701 56.0 6.73 3.58 8.83 0.072
  Inferred 132 55.1 7.03 3.96 9.37 0.066
  Total 1218 56.4 6.48 3.50 8.69 0.079

 

West Pilbara Iron Ore Project (Channel Iron Deposits) Stage 1 Total Comprising 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
API (100%) Measured 135 57.7 6.10 2.32 8.25 0.134
  Indicated 101 56.9 7.46 2.61 7.69 0.128
  Inferred 7 55.6 8.93 2.85 7.59 0.126
  Total 243 57.3 6.74 2.46 8.00 0.131

 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
Red Hill JV (API 60% Measured 247 57.2 5.67 3.69 8.13 0.079
and earning to 81%) Indicated 460 56.3 6.30 3.84 8.62 0.071
  Inferred 107 55.2 6.80 4.17 9.31 0.066
  Total 813 56.5 6.18 3.84 8.56 0.073

 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
Mt Stuart JV (API 70%) Measured 3 55.3 6.45 3.56 9.98 0.042
  Indicated 140 54.4 7.60 3.42 10.36 0.036
  Inferred 19 54.5 7.70 3.18 10.28 0.039
  Total 162 54.4 7.59 3.39 10.34 0.036

 

West Pilbara Iron Ore Project - Other than Stage 1

West Pilbara Iron Ore Project (Channel Iron Deposits)  

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
API (100%) Measured - - - - - -
  Indicated 48 57.3 5.27 3.71 8.56 0.058
  Inferred 989 55.3 7.22 3.69 9.46 0.060
  Total 1037 55.4 7.13 3.69 9.41 0.060

West Pilbara Iron Ore Project (Detrital Iron Deposit) 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
API (100%) Measured - - - - - -
  Indicated - - - - - -
  Inferred 101 54.4 11.94 3.60 5.76 0.080
  Total 101 54.4 11.94 3.60 5.76 0.080

West Pilbara Iron Ore Project - Hardey Project (Bedded Iron Deposit) 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
API (100%) Measured 106 61.4 3.74 2.33 5.42 0.147
  Indicated 23 60.0 4.13 2.54 6.83 0.100
  Inferred 23 58.7 5.32 2.59 7.37 0.108
  Total 151 60.8 4.03 2.40 5.92 0.134

Eastern Pilbara - Innawalley Pool Project (Bedded Iron Deposit) 

Joint Venture JORC Classification Mt Fe% SiO2% Al2O3% LOI% P%
API (100%) Measured - - - - - -
  Indicated - - - - - -
  Inferred 63 58.8 3.91 4.55 6.43 0.160
  Total 63 58.8 3.91 4.55 6.43 0.160

 

  

West Pilbara Iron Ore Project  - Total Resources

JORC Classification

Mt

Measured 491
Indicated 772
Inferred 1,307
Total 2,570

 

Competent Person Statement

Stage 1 

The information in this statement which relates to the West Pilbara Iron Ore Project – Stage 1 Mineral Resources is based on information compiled by Mr Richard Gaze who is a full-time employee of Golder Associates Pty Ltd, and Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Richard Gaze has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition).

The Competent Person responsible for the geological interpretation and the drill hole data used for the West Pilbara Iron Ore Project – Stage 1  resource estimation is Stuart Tuckey. Mr Tuckey is a full-time employee of API Management Pty Ltd, is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). Mr Tuckey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Other than Stage 1

The information above that relates to West Pilbara Iron Ore Project (other than Stage 1) and the Eastern Pilbara Mineral Resource Estimates was prepared under the supervision of Mr Stuart Tuckey. Mr Tuckey is a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of API Management Pty Ltd. Mr Tuckey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Tuckey consents to the inclusion of the matters based on his information in the form and context in which it appears.

Ore Reserves

Ore Reserve Statement as of September 2015

Project Ore Reserves (JORC) for the WPIOP Stage 1 totals 780Mt as set out in the table below.

WPIOP – Stage 1 Ore Reserve Estimate (100% Project Basis)
Ore Reserve Product Tonnes
(Mt,dry)
Fe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%)
Product 1 (WPF1) Proved 200 58.0 5.2 3.5 0.08 7.8
  Probable 444 57.6 5.5 3.1 0.08 8.4
  Total Ore 643 57.7 5.4 3.2 0.08 8.2
Product 2 (WPF2) Proved 20 54.3 7.9 4.6 0.08 9.0
  Probable 117 54.6 8.2 3.7 0.08 9.2
  Total Ore 137 54.5 8.1 3.8 0.08 9.2
TOTAL(WPF1 + WPF2) Proved 220 57.6 5.5 3.6 0.08 7.9
  Probable 560 57.0 6.1 3.2 0.08 8.5
  Total Ore 780 57.2 5.9 3.3 0.08 8.4
Waste (dmt) Mt (dry) 601

 

Strip Ratio1 waste:ore 0.75

 

1Strip ratio is the ratio of mined waste to mined ore (which is slightly higher than product ore due to recovery losses)  

WPIOP – Stage 1 Ore Reserve Estimate – Split by Joint Venture

Joint Venture Category Tonnes Fe SiO2 Al2O3 P LOI Strip Ratio % of Total Reserve
    (%) (%) (%) (%) (%) (%)    
APIJV Proved 10 57.2 5.8 3.2 0.11 7.5    
  Probable 151 58.1 6.0 2.2 0.13 8.0    
  Total Ore 161 58.0 6.0 2.2 0.13 8.0 0.67 20%
MSIOJV Proved 3 55.4 6.4 3.5 0.04 9.9    
  Probable 80 55.1 7.1 3.2 0.04 10.2    
  Total Ore 83 55.1 7.0 3.2 0.04 10.2 0.84 11%
RHIOJV Proved 208 57.7 5.5 3.6 0.08 7.9    
  Probable 329 57.0 5.9 3.7 0.07 8.4    
  Total Ore 537 57.2 5.7 3.6 0.07 8.2 0.79 69%
Total WPIOP Proved 220 57.6 5.5 3.6 0.08 7.9    
  Probable 560 57.0 6.1 3.2 0.08 8.5    
  Total Ore 780 57.2 5.9 3.3 0.08 8.4 0.75 100%

Note: The total ore Reserves by joint venture set out in the above table are for both WPF1 and WPF2 products.

The following abbreviations have been used in relation to the joint ventures comprising the West Pilbara Iron Ore Project:

  • APIJV means the Australian Premium Iron Joint Venture;
  • MSIOJV means the Mt Stuart Iron Ore Joint Venture; and
  • RHIOJV means the Red Hill Iron Ore Joint Venture.

Competent Person Statement

The information in this statement that relates to the WPIOP Ore Reserve estimate is based on information compiled and reviewed by Ms Kate Sommerville, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy.  Ms Sommerville is a full time employee of AMC Consultants Pty Ltd.  Ms Sommerville has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Ms Sommerville consents to the inclusion of the matters relating to the West Pilbara Iron Ore Project – Stage 1 Ore Reserve based on the information in the form and context in which it appears.  Reserves are quoted in compliance with the JORC Code 2012.”