The Chichester Range trends west-northwest along the northern edge of the Fortescue Valley for approximately 200 kilometers and is known to be underlain predominately by the Marra Mamba Iron Formation. The Chichester Hub deposits are a single, 80 kilometer long deposit, locally dissected by erosion caused by subsequent drainage channels.

Chichester Hub—In the Chichester Range, the Marra Mamba Iron Formation dips less than 5 degrees south and trends west-northwest. In the Christmas Creek area, iron ore outcrops sporadically along with hardcap and detritals. However, further west at Cloudbreak, virtually no iron ore outcrops and surface material is predominately hardcap, unmineralized Nammuldi member rocks and/or detritals.

At the Chichester Hub, the zone of enrichment follows the Nammuldi Member of the Marra Mamba Iron Formation and varies from 5 kilometers to 9 kilometers wide and 80 kilometers long (with a 10 kilometer break where it has been significantly eroded by drainages). Ore grade material can range from about 1 to 25 meters thick with an average approximately 7 meters in thickness. Better mineralized areas average between 8 and 15 meters in thickness. All mineralization dips approximately 2 to 5 degrees south.

Mineralization in the Christmas Creek deposit occurs over an area approximately 39 kilometers along strike and up to 9 kilometers in width, from the surface to a depth of 117 meters. There are four types of mineralization at Christmas Creek: hardcap mineralization, Nammuldi Member mineralization (greater than 50% iron cut-off grade), higher grade Nammuldi Member mineralization (greater than 57% iron cut-off grade) and CID.

Mineralization in the Cloudbreak deposit covers an area approximately 37 kilometers along strike by 5 kilometers in width, from the surface to a depth of 90 meters below surface. Mineralization ranges from 1 to 28 meters thick and is 7 meters thick on average. There are three types of mineralization at Cloudbreak: Nammuldi Member mineralization (50% iron cut-off grade), higher grade Nammuldi Member mineralization (greater than 56% iron cut-off grade) and CID.

The ore bodies at the Chichester Hub are gently undulating sheets of mineralization which are easily accessible from multiple open pit operations at each location. The position and structure of the iron ore mineralization in the Chichester Range allow for a strip mining process with the ability to backfill mined areas as excavations move along the mine length. The Chichester Hub deposits dip flatly to the south and overburden depth does not exceed 80 meters. The overburden is removed first, followed by hardcap material, then ore.

The thickness of the hardcap, which overlies the ore, is typically between 5 and 7.5 meters. Removing the hardcap involves either “rip and doze” or “drill and blast” methods, depending on the thickness. Once the hardcap mining and overburden removal has progressed into a second and third panel, ore mining is initiated in the first panel. This three panel configuration advances along the strike.

In order to maximize the quality of mined iron ore product, processing is typically carried out on all ore mined. This is a relatively simple process compared to other commodities, and often only involves a “crush and screen” operation in order to separate the mined material into lump and fines iron ore products.

OPF consists of a separate screen house linked by conveyors to a crushing house, a beneficiation facility (referred to as the “desand” plant) and three large capacity product surge piles which feed a belowground vault that supplies the train loader with product. The crushing, desanding, screening and other ore processing facilities were obtained under a lease agreement.