Mining Intelligence and News
Australia

Blacksmith Project

Click for more information

Categories

Overview

Mine TypeOpen Pit
StagePre-Feasibility
Commodities
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotRed Hawk has approval for the Blacksmith Project under the Environmental Protection and Biodiversity Conservation.

The Pre-Feasibility Study for the Blacksmith Iron Ore Project has defined a robust project development strategy based on producing up to 5Mtpa of 60.5% Fe (±0.5% Fe), direct shipping ore (DSO) with a potential Life of Mine of 23 years.

Red Hawk has matured its execution strategy to align with the targeted project delivery dates. The execution of the Project will be achieved by:
• continuing to progress approvals
• completing a comprehensive DFS
• executing an Early Works Program.

The Blacksmith project includes the haulage operations centre - Whim Creek staging facility.

Owners

SourceSource
CompanyInterestOwnership
Red Hawk Mining Ltd. 100 % Indirect
The Blacksmith Project is 100% owned by PIOP Mine Co Pty Ltd, a wholly-owned subsidiary of Red Hawk Mining’s Ltd.

Contractors

Lock

- subscription is required.

Deposit type

  • Banded iron formation
  • Detrital Iron (DID)

Summary:

The Blacksmith Project is situated within the Hamersley Province which covers an area of approximately 80,000km2 and comprises Late Archaean to Palaeo-Proterozoic rocks of the Mount Bruce Supergroup, which consists of the Fortescue, Hamersley, and Turee Creek groups, overlain by remnants of the Wyloo Group.

The banded iron formation (BIF) units of the Hamersley Group host the bedded iron deposits of the Pilbara with mineralisation occurring predominantly within the Marra Mamba Iron Formation and Brockman Iron Formation. Substantial mineralisation also occurs in overlying detrital units.

At Blacksmith the Brockman Iron Formation is present as either an unenriched BIF or as martitegoethite mineralisation within the Dales Gorge Member, although predominantly as a heavily hard capped goethite-rich style of mineralisation.

The Blacksmith mining lease includes seven deposits: Ajax, Badger, Blackjack, Champion, Delta, Eagle and Paragon. The PFS only considers the development of four deposits - Delta, Paragon, Blackjack and Champion.

Delta geology
Delta is approximately 4km long and 2km wide and includes a number of minor valleys separated by ridgelines which report to a single large valley entrance. The depth of the valley from the floor to the basement contact varies from approximately 20m to 50m on average across the central part of Delta. In the central part of the deposit, overburden (SZ and HMZ) averages 20m in depth and overlies LZ and PZ which can each be up to 30m thick. Within the fingers of Delta, the valley walls are characterised by outcropping lenses of canga overlaying the mineralised Dales Gorge Member with minimal waste overburden. A cross-section is provided in Figure 3.

Paragon geology
Paragon is located in the northeast of the Blacksmith Project and comprises a northern valley containing a deepening detrital sequence north to the lease boundary, and a small, enclosed valley to the south, each separated by outcropping Brockman Iron Formation. The resource is relatively flat lying to shallow dipping of average thickness 5m to 25m in both outcrop and under shallow cover. The valley to the south varies from 16m to 26m deep from the valley floor to top of bedrock and contains a substantial accumulation of canga overlying hardcapped Dales Gorge Member, overlain by lenses of LZ and PZ of varying thickness.

Champion geology
Detrital mineralisation at Champion is predominantly PZ which occurs distal to outcrop, with zones of LZ close to outcrop. Areas of canga overlie hardcap mineralised Dales Gorge Member, and minor channel-iron deposit occurs in the far northwest of the deposit. Canga occurs throughout the Champion deposit as discrete lenses directly on top of hardcap. It tends to predominate along the channel margins where it can assume thicknesses of up to 20m. It becomes more dominant in the northern, narrowest part of the valley where it occurs as lenses up to 15m thick on both sides of the valley. In addition, substantial canga occurs in the western part of Champion. In the northern part of Champion, mineralisation is restricted to the central and western sides of the valley, with the eastern half being almost barren apart from thin lenses of LZ overlying thin canga. In the central part of the valley abutting the CID, the PZ is up to 30m thick.

Blackjack geology
The detrital valley in Blackjack is shallower (up to 60m deep) and narrower than in Champion and Delta. Consequently, no major deposition of HMZ has occurred. Similarly, no CzD2 or CID was identified. The Blackjack valley comprises a thin SZ overlying a simple “layer cake” sequence of LZ and PZ, in approximate 50:50 proportions. A continuous lens of canga occurs to the east. This may grade into PZ along strike towards the centre of the valley. Small lenses of canga occasionally occur at the base of the detrital valley but these have no continuity. Hardcap mineralisation has formed in the Dales Gorge Member in the west as well as to the east in the southern part of the deposit.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

Lock

- subscription is required.

Production

CommodityUnitsAvg. AnnualLOM
Iron Ore M wmt 595
All production numbers are expressed as fines.

Operational metrics

Metrics
Annual mining capacity  ....  Subscribe
* According to 2024 study.

Production Costs

CommodityUnitsAverage
C1 cash costs Iron Ore USD  ....  Subscribe
C2 total cash costs Iron Ore USD  ....  Subscribe
C3 fully allocated costs Iron Ore USD  ....  Subscribe
Assumed price Iron Ore USD  ....  Subscribe
* According to 2024 study / presentation.

Project Costs

MetricsUnitsLOM Total
Total CapEx $M AUD  ......  Subscribe
Gross revenue (LOM) $M AUD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M AUD  ......  Subscribe
Pre-tax NPV @ 8% $M AUD  ......  Subscribe
After-tax NPV @ 8% $M AUD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

Lock

- subscription is required.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jul 14, 2024
....................... Subscription required ....................... Subscription required Subscription required Jul 3, 2024
....................... Subscription required ....................... Subscription required Subscription required Jul 14, 2024

EmployeesYear
...... Subscription required 2024

Aerial view:

Lock

- subscription is required.