Magnetite Resource & Reserves
The continuing development of magnetite resources project is poised to become a cornerstone of YG Groups growth strategy. The combined potential of Tomahawk/Mt Woods and Cairn Hill could substantially increase the company’s resource base, offering long-term value for stakeholders. Continued exploration and successful delineation of mineral resources will solidify this region’s position as one of the most valuable exploration zones in South Australia.
South Australia Magnetite Opportunity
South Australia is a relatively small exporter of predominately DSO hematite lump and fines products into the seaborne iron ore market and has ambitions to produce 50Mtpa of magnetite by 2030.
Magnetite mines and developing projects highlighting the three iron regions, June 2024.
YG Group Magnetite Prospects
The Mt Woods region contains over 25 magnetite prospects and has a global exploration target tonnage of 0.9 -1.2 Billion tonnes of magnetite rich rock ranging in grade from 18% to 32%.
Metallurgical work from Snaefell and six other regional prospects consistently show that the magnetite in the Mt Woods region is comparatively coarse. A high-grade, low impurity magnetite concentrate of above 68.5% iron grade was produced at a relatively coarse grind size of 75 to 80 micron (P80) with approximately 28.5% yield.
Tomahawk, Axehead and Tomahawk North prospects have magnetite up to 32% Fe over long consistent drill intersections and have many other beneficial physical and metallurgical properties.
YG Group’s magnetite exploration programs, previous historical gold exploration drilling and regional geophysical magnetics surveys form the basis to the exploration target tonnage of the Mt Woods region.
Significant drill intersections from 2012 RC drilling
Mineralisation intersected at Tomahawk North, Axehead and Eagle prospects occurred as layered medium-coarse magnetite within a quartz-rich rock, part of a meta-sedimentary package that includes quartz dolomite and marble. The mineralogy of the Tomahawk prospect area appears to be magnetite and quartz +- carbonate compared to the magnetite gneiss at Snaefell, Penryhn and Fitzgerald Dam which have higher amounts of feldspar.