Yilgarn Iron Province

CAZ: 100%

The Parker Range Iron Ore Project lies approximately 15 kilometres south-east of Marvel Loch and approximately 400 kilometres east of Perth, in the Yilgarn region of south-western Western Australia.

The resource estimate for the Mount Caudan deposit at the project is currently 35.1mt @ 55.9% Fe (61.4% CaFe). The resource contains two primary ore-types; a haematite – goethite Banded Iron Formation (BIF) and smaller component of secondary Canga and Detrital ore.

Magnetite mineralisation also occurs at depth below the resource. The ore has low levels of deleterious elements and is suitable for Direct Shipping Ore (DSO).

Mineral Resources and Mineable Reserves were modelled using a nominal 50% Fe wireframe for BIF (oxide) and Detrital material with a 51.5% lower Fe cut-off grade. The resulting Measured, Indicated and Inferred Resource is 35.1Mt @ 55.9% Fe as follows;

Based on the current Measured and Indicated Resources, Cazaly have mine optimisation, pit design and planning to provide a mine ore reserve estimate of 31.4Mt @ 55.3% Fe (60.7% CaFe) with target fines marketable reserves of 30.2Mt @ 56.6% Fe (62.9% CaFe) as follows;

Mount Caudan – Ore Reserve Estimate (51.5%Fe Cut-off Grade)

Measured Mineral Resource
Type Tonnes Fe
%
Al2O3
%
P
%
SiO2
%
LOI
%
Mn
%
S
%
Detrital 3.4 54.9 6.4 0.013 7.2 6.4 0.6 0.07
Oxide 21.0 56.2 2.0 0.020 6.0 9.3 1.4 0.07
Total 24.4 56.0 2.6 0.019 6.2 8.9 1.3 0.07
Indicated Mineral Resource
Type Tonnes
t
Fe
%
Al2O3
%
P
%
SiO2
%
LOI
%
Mn
%
S
%
Detrital 0.3 52.9 7.7 0.011 7.7 7.0 0.8 0.07
Oxide 7.3 56.8 2.7 0.024 5.9 9.1 0.5 0.09
Total 7.7 56.6 3.0 0.024 6.0 9.0 0.5 0.09
Inferred Mineral Resource
Type Tonnes
t
Fe
%
Al2O3
%
P
%
SiO2
%
LOI
%
Mn
%
S
%
Detrital 0.3 54.4 5.2 0.022 6.5 9.7 0.1 0.10
Oxide 2.8 53.9 3.4 0.016 9.3 8.6 0.5 0.15
Total 3.1 54.0 3.6 0.017 9.0 8.7 0.4 0.14
Total Mineral Resource
Type Tonnes
t
Fe
%
Al2O3
%
P
%
SiO2
%
LOI
%
Mn
%
S
%
Detrital 4.1 54.7 6.4 0.014 7.2 6.8 0.6 0.07
Oxide 31.1 56.1 2.3 0.021 6.3 9.2 1.1 0.08
Total 35.1 55.9 2.8 0.020 6.4 8.9 1.0 0.08

The Mt Caudan Ore Reserve is based on a single fines production rate

of 1.4 Mtpa (DSO year 1) ramping to 4.6 Mtpa (IFP year 2+)

with a life of mine waste to ore stripping ratio of 2.3:1 based on an initial 8.3 years mine life.