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The report listed below is an example of the Complete Report on the FRANCES CREEK that you could have accessed on September 26, 2008, if you were an InfoMine subscriber at the Advanced, Advanced Plus, Professional, Professional Plus, Corporate, or Corporate Plus level (Please note that each company, listed in the Owners section, has its own Complete Report.) For more information on becoming a subscriber, or to subscribe online, please refer to the Subscribe section.
| Location | Northern Territory, Australia | | Nearest Landmark | DARWIN | | Distance | 200 Km South from the nearest Landmark | | Type of Working | Open-Pit | | Status | Producer |
Property Summary
The property is located 5 kilometers north-east of Mt Porter in the
Northern Territory, Australia. (Dec/06)
IRON ORE (haematite) Open Pit producer and GOLD target.
Geology
Geologically, the area is underlain by Lower Proterozoic folded sediments
intruded by Lower Proterozoic granitoids. The Proterozoic sequence
unconformably overlies Archaean intrusive and metamorphic rocks.
The basal unit of the Pine Creek Orogen is the Namoona Group that
is represented in the area by the Masson Formation of phyllite, slate,
siltstone and sandy siltstone with subordinate hematite and limonite
ironstone.
The main iron mineralisation at Frances Creek is known over a distance
of approximately 35 kilometres.
Several gold prospects were discovered, including the Golden Honcho
and Golden Slips reefs.
Operations
As at Jun 30/07, the property includes mine pits at Helene 2 and
Helene 3, and the Helene 1, Thelma 1, Rosemary Extended and Jasmine
Central and West prospects.
The ore is being carried down to the port of Darwin via an access
road in the old rail spur line corridor. At Darwin Port, the conveyor
facilities to handle the ore unloading from train to stockpile are
complete. The Darwin Port Corporation has completed a bulk loader
which is capable of loading Panamax-sized vessels (70,000 tonnes).
(Jun/07)
The current (as at Apr 8/08) mine plan is scheduled to produce at
an annualized mining rate of 2 Mtpa by mid-2008, which is expected
to increase to 2.5 Mtpa by the end of 2008 and 3 Mtpa by June 2009.
News Updates
As at Jun 30/08, production ramp-up to a targeted annualised level
of 2.0 Mtpa by Dec/08 and 2.5 Mtpa in 2009 continued, with mine scheduling
and expansion plans for rail and port facilities progressing. In
exploration, field mapping is currently being conducted along strike
from the known deposits at Frances Creek and has been completed at
Elizabeth Marion, with a number of targets generated that are currently
undergoing Aboriginal Heritage work. Mapping is also being conducted
between the Ochre Hill and the Saddles deposits with the aim of generating
exploration targets.
In the quarter ended Jun 30/08, mining activity at Frances Creek
progressed in accordance with the mine schedule. Mining was concentrated
on ore production from the Thelma Rosemary and Helene 2, Helene 3
and Helene 6/7 pits. In the quarter, three shipments totalling 211,000
tonnes of high-grade lump and fines ore
completed to Chinese customers. Design and planning commenced for
the wet crushing and processing facility to
improve product yield and quality and reduce unit costs. Procurement
activities continued on schedule and on budget for the A$8 million
expansion of the Company’s stockpile capacity at the East Arm Point.
In exploration, combined exploration and resource definition drilling
totalled 97 reverse circulation holes for 9,371 metres. There was
continued drilling success at the Jasmine Central, Jasmine West and
Thelma 1 targets, with numerous intersections of high-grade hematite
grading 58-65% Fe. At Ochre Hill, indicated and inferred resources
totaling 1.212 Mt grading 59.8% Fe was announced.
As at Jun 5/08, a third mining fleet was recently deployed. Exploration
continued with near-resource drilling testing along-strike and downdip
extensions of known mineralisation adjacent to the Helene, Thelma
and Jasmine trends. Preliminary reinterpretation of the Helene trend
especially in the region of the high grade Helene 6/7 deposit has
commenced. Detailed structural mapping of the Frances Creek and Mary
River tenements has been initiated and will be undertaken during
the current dry season. The mapping will be used in conjunction with
existing geophysical surveys to identify additional exploration targets
for investigation during 2008/2009. Additional geophysical surveys
including terrain-corrected ground gravity are proposed to be used
to assess geological structures that are identified as being prospective
for iron ore mineralisation.
As at May 19/08, 500,000 tonnes of high grade iron ore have been
shipped.
As at Apr 22/08, a significant upgrade to the crushing and processing
facility will be undertaken next month to boost capacity and throughput
of the operation. The upgrade will increase the overall screening
area, improving plant efficiencies and the quality of the lump ore,
as well as increase wet weather production capacity.
As at Apr 8/08, 100,000 meters of RC drilling was planned for 2008,
with the aim of substantially expanding the high grade resource base
and extending mine life. Results from helicopter-borne, electromagnetic
survey and a multi-spectral survey are being incorporated in the
proposed exploration program. In addition, a complete review of the
available geological information from current and historical records
for Frances Creek, including collation of all geophysical, mine geology
and drilling information, was undertaken. A structural study of the
mine-site and adjacent areas is also planned to generate further
understanding of the geological controls, especially in relation
to the fold closures and hinge areas of the structure.
In the quarter ended Mar 31/08, mining was predominantly concentrated
on ore production from the Thelma Rosemary and Helene 6/7 pits. The
$8 Million expansion of the stockpile area at East Arm Point commenced,
allowing an increase in iron ore product storage capacity to 420,000t.
Mobilization of the third mining fleet was initiated as part of the
production ramp-up, targeting an annualized mining rate of 2.5mtpa
by the end of the calendar year. Drilling concentrated on the Thelma
1 deposit extensions and ore reserve definition drilling, with best
intercepts of 11 m grading 65.9% Fe in hole TRRC182 and 12 m grading
62.8% Fe in hole TRRC183. In addition, initial ore resource models
were completed by Snowden for Thelma 1, Millers, and Helene 9. At
a 55% Fe cut-off, indicated and inferred resources at Thelma 1 total
253,000 tonnes grading 62.52% Fe. At a 50% Fe cut-off, indicated
and inferred resources at Millers total 1.28 Mt grading 53.15% Fe.
At a 55% Fe cut-off, indicated and inferred resources at Helene 9
total 189,000 tonnes grading 59.62% Fe.
On Jan 9/08, reported that it is ramping up production from 340,000
tonnes to 2 million tonnes per annum by June 2008.
In early Jan/08, temporary flooding of the lower section of Helene
6/7 due to a cyclone delayed ore production. (Mar 31/08)
In the quarter ended Dec 31/07, a total of four shipments (two Lump
and two Fines) totalling 271,000t were exported to China during the
quarter. This was one shipment additional to forecast. Mining was
predominantly concentrated on ore production from the Thelma Rosemary
and Helene 6/7 pits with pre-stripping commencing at Helene 2 and
Helene 3, whilst a fifth ore body Helene 5 was pre-stripped for further
grade control drilling and
metallurgical test work. In addition, a further 19 infill RC holes
for 1,765m were drilled at Jasmine Central, with assay results still
outstanding for over half these holes. Best results thus far include
35 m of 62.4% Fe from 43 m in hole JERC065. At Jasmine West, holes
JERC083 and JERC084 returned 15 m of 62.9% Fe and 62.5% Fe, respectively.
At Rosemary Extended, the highlight was hole TRRC179 which cut 10
m of 63.85% Fe from 15 m.
On Oct 31/07, reported drilling results. Best results at Helene 11
include 40.0 m at 62% Fe from 39.0 m depth, while drilling at Jasmine
Central identified high grade iron ore up to 67.3% Fe including an
intercept in excess of 40.0 m at 63.6%Fe.
As at Oct 25/07, following the successful evaluation of iron ore
fines, a 354,000 tonne increase in the indicated resource base, taking
the inferred and indicated resource to above 10 million tonnes, at
an average of 60.47% Fe. In addition, there are now more than five
million tonnes in reserves.
On Oct 5/07, the maiden shipment arrived in China.
During the quarter ended Sep 30/07, mining activity progressed ahead
of scheduled capacity. Mining has continued on four of the scheduled
ore bodies at Helene 6/7, Thelma Rosemary, Helene 2 and Helene 3.
Territory has developed five pits in preparation for elevated wet
season mining. In addition, the crushing and screening plant was
also constructed and commissioned during the quarter. The plant has
a nameplate capacity of three million tonnes per annum in preparation
for the scheduled ramp up above 1.5 million tonnes per annum. Finally,
a total of 16,334m in 273 RC holes targeting iron ore mineralisation
was drilled within the Frances Creek and Mt Bundey project areas
during the quarter. At Jasmine Central, best results include 44 m
of 63.6% Fe in hole JERC051. At Helene 11, best results were 40m
at 62% Fe from 39m depth in FARC075 and 39m at 62.3% Fe from 39m
depth in FARC074.
On Sep 28/07, the maiden shipment of 67,500 tonnes of high grade
iron ore was loaded and is en route from the Port of Darwin to China.
On Aug 28/07, marketing and pricing arrangements for its first shipment
of iron ore were completed. Territory has in place a life-of-mine
sales and marketing agreement with global trading and logistics leader
Noble Group. Via this agreement, Territory has agreed a price of
US$75 per tonne FOB Darwin (basis 61.5% Fe) for its first shipment
of iron ore expected in September.
On Jul 20/07, following the commencement of production in June, the
first train carrying an initial 2300 tonnes of
high grade lump has been railed from Frances Creek to Darwin ahead
of the first shipment expected in the September quarter.
As at Jun 30/07, date, a total of 12,577 of RC drilling has been
carried out within the Frances Creek minesite area and has included
drilling adjacent to scheduled mine pits at Helene 2 and Helene 3,
and exploration drilling on Helene 1, Thelma 1, Rosemary Extended
and Jasmine Central prospects.
In the quarter ended Jun30/07, commenced production of iron ore at
the Frances Creek Project (Helene 6/7 ore body) and grade control
drilling started at Thelma Rosemary. In June, high grade lump ore
was placed on stockpiles.
As of Mar/07, the project was on target to commence iron ore production
in May 2007. Territory Iron has struck an agreement with the traditional
owners of the area covering the company’s Frances Creek operations
in the
Northern Territory. The Parties have agreed between them in relation
to the grant of mining interests and development of the Frances Creek
iron ore project.
In the quarter ended Mar31/07, detailed ground gravity (geophysical)
survey was completed within the Frances Creek mine site area to trial
the technique as an ore finder. Preliminary results are highly encouraging
and identifiy the occurrence of gravity anomalies interpreted as
being associated with sporadic iron mineralisation over about a 500m
and 300m of ironstone strike extent at Helene 11 and 9, respectively.
An aggressive $5 million exploration programme of 40-60,000m of RC
drilling is set to resume in April 2007. Main focus will be on green
fields exploration with the objective of discovering new iron tonnage
to increase the current Frances Creek mine life.
On Jan18/07, announced a 950,000 tonnes increase in Reserves. Total
Reserves (all Probable) now stands at 4.81 million tonnes at 61.3%.
Total resource tonnage has been increased from the 9.41 million tonnes
at 60.9% Fe reported in November to 9.73 million tonnes at 60.7%
Fe, underpining a 3 to 4-year mine life at Frances Creek.
In the year ended 2006, open pit designs are being fi nalised and
detailed scheduling commenced to determine the optimum product blends.
In the quarter ended Dec31/06, scout drilling of three aeromagnetic
targets at Mt Bundey project area intercepted
significant iron mineralisation in three drill holes. Best result
was 7 metres grading 62.3% Fe from 3 metres depth.
Mine development has advanced. A Mine Management Plan is being drafted.
At the Darwin port where the ore will be unloaded from trains and
stockpiled prior to shipping, conveyor facilities are required to
take the Territory Iron product from the train bottom dump facility
to the stockpile pad area. The design and construction of this facility
is
well advanced.
On Nov22/06, the Resource at Frances Creek has been increased by
792,000 tonnes to 9.4 million tonnes at 60.9% Fe. Overall Indicated
Resource tonnage has increased by 1.8 million tonnes to 7.1 million
tonnes. Inferred Resource is estimated at 2.05 million tonnes at
59.3% Fe. Resource tonnage increased for Helen 2/3 and 6/7.
In the quarter ended Sept31/06, total Indicated and Inferred Resources
at Frances Creek now stand at 8.6 million
tonnes at an average grade of 60.3% Fe. Drilling has confirmed a
major resource along the Helene 2 to Helene 3 ironstone line of mineralisation.
Grades of up to 68.1% Fe and drill widths up to 21m were intersected
over a total strike distance of 630 metres. A resource estimate is
being finalised for these deposits.
On Sept11/06, best results at Helene 6/7 include: 10m at 63.2% Fe,
0.04% P from 43m depth in hole HERC099, and 15m at 64.2%Fe, 0.06%P
from 62m depth at Helene 5. Modest increase expected in the Jasmine
East Reserve tonnes. Helene 6/7 drilling confirms the geological
model and indicates reasonable expectation of additional Reserves.
Helene 2 to Helene 4 shaping up with good thickness and grade. (10.3
m of 64.3% Fe, 0.08% P, 2.13% AI2)3, 3.92% SiO2)
In Aug/06, environmental report released for public comment/review.
On Jul 27/06, the company presented a resource and reserves update
for its Helene 6/7 deposit at the Project . This update follows a
recently completed resource model and pit optimization study as a
part of the ongoing assessment of drilling results. The mineral resource
has been tabulated above a block model cut-off grade of 55% Fe. At
an Iron cut-off of 55% Fe, the indicated resource was estimated at
1.43 million tonnes at grades of 62.74% Fe, 2.66% Al2O3, 6.34% SiO2
and 0.04% P, and the inferred resource at 1.42 Mt at grades of 58.98%
Fe, 3.33% Al2O3, 8.77% SiO2 and 0.04% P. The resources have been
classified into indicated and inferred categories according to the
2004 JORC Code. The resouce increase of inferred material which will
now form the focus for further drilling to potentially convert into
reserves.
On Jul 19/06, reported additional drilling results for hematite.
Highlighted intervals were 37.0 m @ 67.4 %Fe from 38.0 m in hole
HERC079; 20.0 m @ 64.6 % Fe from 53.0 m in hole HERC064 and 18 m
@ 63.8 % Fe from 88.0 m in hole HERC061. The company revealed that
the extensions lie to the north and south of the previously mined
open pit and thus increase the resource estimate.
In the quarter ended Jun/06, Territory Iron drilling of the France
Creek iron resources discovers large high grade
low impurity intersections. Mining on target to commence in late
2006.
In Apr/06, a Memorandum of Understanding with a Chinese steel mill
was signed for the purchase of most of Territory’s 2007 iron ore
production from the company’s Frances Creek operation.
In Feb/06, the board of Territory Iron Ltd announced the go-ahead
of mining at the Frances Creek iron project. Territory Iron have
committed to $2.6 million on exploration in 2006 to target additional
iron mineralisation in the Frances Creek district (including Arafura’s
tenements), with the aim of extending resources and mine life. Mining
is anticipated to commence in the first quarter of 2007. On the commencement
of mining and shipping, Arafura will receive a royalty payment of
$1.30 per tonne for lump ore and $1.00 per tonne for fines after
prepayment despatches. Arafura has already received $750,000 in prepayments.
On Jan 24/06, announced an update of the resource and reserve estimate
for their Frances Creek iron property. The new estimate shows the
indicated category at 4.9 Mt grading 61.1% Fe, while the inferred
resource stands at 0.58 Mt grading 59.4% Fe. The probable mineral
reserve, which is included in the previously mentioned resources,
stands at 3.48 Mt grading 61.1% Fe. The study is considered to be
at a ‘pre-feasibility’ level which suggests that estimates could
be enhanced through more detailed work.
For the quarter ended Jun30/05, at the Helene 5 target assay results
are available for the first 22 holes in the 2005 program and confirm
that the general tenor is as expected with the mineralisation occurring
as a tabular body of reasonable continuity dipping moderately to
the west. Continuity is good over a strike length exceeding 200 m.
At Ochre Hill, mineralisation occurs as more or less continuous outcrops
over a 500 m extent along a prominent hillcrest line. Better grade
iron mineralisation occurs in two elongate pods separated by a zone
of smaller narrower, discontinuous mineralisation. Total aggregate
strike length of the pods is about 300 m. The pods occur near surface
or outcrop and extend continuously to about 50 m depth below surface.
At both prospects the down dip and along strike potential remains
to be fully tested and infill drilling to confirm continuity is yet
to be done.Highlights from the drilling include 7.3 m grading 61.2%
Fe at Helene 5 and 16.5 m grading 60.8% Fe at Ochre Hill. The Helene
6/7 pit has been successfully dewatered and access is being established
to drill the mineralised material remaining beneath the pit floor.
Gravity survey was trialled over known, but poorly outcropping mineralisation
at Thelma Rosemary and Millers to determine its applicability in
discovering buried ore bodies and was successful. It is anticipated
that over 20,000 m of drilling will be completed in 2005. During
the next quarter, the company will continue its drill out of Frances
Creek deposits and undertake reconnaissance exploration of the other
prospective areas within the broader tenement holdings. A 1,876 line-
km, low altitude high resolution airborne magnetic survey is scheduled
for August over the old Frances Creek minesite and North Frances
Creek areas.
On Jun17/05, a comprehensive RC/RAB drilling program for the 2005
field season has commenced. Two drill rigs arrived on site on Jun11/05
and have commenced RC drilling of the Helene 5 and Ochre Hill prospects
where a total of 1,100,000 inferred resource tonnes of iron mineralisation
was outlined from drilling in 2004. A total of 19 holes for 900 m
have been drilled to date. Assays from this work are not yet available.
Dewatering of the flooded Helene 6/7 pit commenced on Jun9/05 and
is progressing well.
As of Apr27/05, drilling is expected to commence in late May/05 with
an exploration budget AUD3.8 million for the field season. The main
focus of work at Frances Creek will be to convert Inferred Resources
to Indicated and Measured and to explore for additional Resource
tonnes. Pre drilling field work is well advanced with marking out
of drill sites at all major prospects. A dewatering study has commenced
to enable access to the old Helene 6/7 open pit for drilling out
the mineralisation remaining below the pit floor. Elsewhere in the
project area the Company will conduct reconnaissance inspection of
iron occurrences in early May/05 to identify and prioritise targets
for follow up Scout RAB and RC drilling.
In 2004, exploration was undertaken and included geophysical data
collection and interpretation, geological mapping, and a drilling
campaign designed to provide a higher level of confidence in the
quality of existing resource estimates. A significant result of this
work was the delineation of 3.4 million tonnes of JORC code inferred
resources at an average grade of 61.5% Fe.
From 1999-2000, exploration included rock chip sampling.
From 1965-1975 exploration included drilling and geophysical surveys.
From 1961 to 1965 exploration included drilling, trenching, geophysic,
mapping, surface sampling and drilling.
Property Reserves
All reserves are sorted by Commodity in alphabetical order.
| Commodity | GOLD | | Class | Target | | Tonnage | N/A | | Grade | N/A | | Reference Date | March 29/2007 |
| Commodity | IRON ORE | | Class | Indicated Resource | | Tonnage | 8,039,000 | | Grade | 60.77% | | Note | At a 55% Fe cut-off. For Helene 6/7, Helene 5, Helene 2/3, Thelma Rose, Jasmine East, Ochre Hill and Ore Fines (50% Fe cut-off). | | Reference Date | October 25/2007 |
| Commodity | IRON ORE | | Class | Inferred Resource | | Tonnage | 2,049,000 | | Grade | 59.30% | | Note | At a 55% Fe cut-off. For Helene 6/7, Helene 5, Helene 2/3, Thelma Rose, Jasmine East, Thelma 2, Saddle East and Millers (Fe+Mn at a 50% Fe cut-off). | | Reference Date | October 25/2007 |
| Commodity | IRON ORE | | Class | Inferred Resource | | Tonnage | 189,000 | | Grade | 59.62% | | Note | Indicated and inferred resources for Helene 9 at a 55% Fe cut-off. | | Reference Date | March 31/2008 |
| Commodity | IRON ORE | | Class | Inferred Resource | | Tonnage | 253,000 | | Grade | 62.52% | | Note | Indicated and inferred resources for Thelma 1 at a 55% Fe cut-off. | | Reference Date | March 31/2008 |
| Commodity | IRON ORE | | Class | Inferred Resource | | Tonnage | 1,280,000 | | Grade | 53.15% | | Note | Indicated and inferred resources for Millers at a 50% Fe cut-off. | | Reference Date | March 31/2008 |
| Commodity | IRON ORE | | Class | Inferred Resource | | Tonnage | 643,000 | | Grade | 59.90% | | Note | For the Ochre Hill deposit at a 55% Fe cut-off. | | Reference Date | June 30/2008 |
| Commodity | IRON ORE | | Class | Indicated Resource | | Tonnage | 569,000 | | Grade | 59.80% | | Note | For the Ochre Hill deposit at a 55% Fe cut-off. | | Reference Date | June 30/2008 |
| Commodity | IRON ORE | | Class | Probable Reserve | | Tonnage | 5,018,000 | | Grade | 61.30% | | Note | At a 55% Fe cut-off. | | Reference Date | October 25/2007 |
Reported Ownership
A reported interest of 0% typically implies the existence of an option agreement.
All shareholders are sorted by name in alphabetical order.
* CLICK ON THE COMPANY NAME FOR A COMPLETE REPORT.
| Company Owner |  ARAFURA RESOURCES LIMITED | | Type | Public | | Classification | Track | | Interest | 0.0% | | Note | Retains gold exploration and development rights over EL10137, EL22269 and EL22270. | | Reference Date | March 31/2008 |
| Company Owner | TERRITORY RESOURCES LIMITED
Featured Company
(free access to detailed report) | | Type | Public | | Classification | Monitor | | Interest | 100.0% | | Note | Held some tenements 100% and then acquired EL10137, EL22269 and EL22270 from Arafura Resources (along with the cancellation of its iron ore royalty) in late Apr/08. | | Reference Date | June 30/2008 |
Documents
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