The company has secured the services of experienced local Chilean contractor MTN Gold to deliver a turnkey mining, crushing and ore processing services
Freehill Mining Limited (ASX: FHS ‘Freehill’ or ‘the Company’) is pleased to report that Phase-1 mining operations are now underway at its 100%-owned Yerbas Buenas magnetite project in Chile with first ore sales anticipated in January 2022.
After an extensive tender process, the Company has secured the services of experienced local Chilean contractor MTN Gold SpA (‘MTN’) to deliver a turnkey mining, crushing and ore processing services. MTN will supply all necessary mining, crushing and processing equipment so Freehill can deliver ~5,000 tonnes per month of 53%-63% Fe HG fines for sale to offtakers that have already been identified. The terms of the agreement with MTN are confidential but commercially favourable to both parties.
This is an excellent development for Freehill and is the culmination of many months of work and planning to ensure a sustainable and profitable mining operation can be established at Yerbas Buenas. The findings of the report by highly respected mining consultant Dean David FAusIMM, CP (Met) of DD Consulting (see ASX release 14 August 2021) concluded that Yerbas Buenas’ ore is suitable for the production of 68%+ Fe grade pellet feed, 63% Fe grade HG fines and 53% Fe grade LG fines and this report, and today’s appointment of MTN have been critical catalysts for the commencement of mining operations.
MTN’s immediate focus is to deal with waste rock from the proposed mine site and to undertake site preparation work so the plant and equipment can be set up and be fully operation within the next 90 days. Freehill will report a steady stream of updates as operations are established and first sales occur.
Chief Executive Officer Paul Davies said: “The appointment of an experienced and proven contractor is an excellent outcome for Freehill and consistent with our strategy of establishing a low CAPEX, low OPEX, sustainable mining operation at Yerbas Buenas. Our immediate focus is to ensure the consistent delivery of ~5,000 tonnes of saleable product per month using third-party infrastructure and support. Building a steady revenue base from the Phase 1 operations is our key objective so we can self-fund our near-term growth and limit shareholder dilution. While we have been working behind the scenes diligently to deliver today’s outcome, we look forward to regularly reporting on progress as activities ramp up. We can also confirm that there is considerable demand for the Yerbas Buenas ore and we are assessing a number of sales channels.”
Source: Company Press Release