Iron Ore - EL 5811
(LML has exclusive rights to all minerals)
• Total iron ore Indicated and Inferred Mineral Resource 109Mt.
• Total iron ore Exploration Targets 250-750Mt.
• Heads of Agreement with Chinese Steel Mill for at least 50% iron ore production.
• Gum Flat is within 2 km of Uley Graphite mine and is very prospective for graphite with numerous graphite prospects and drillhole intersections.
Lincoln's Gum Flat Iron Ore Project is located on southern Eyre Peninsula which is a major world-class iron ore province extending from the Middleback Ranges to Port Lincoln.
Gum Flat EL 5811 contains a number of priority magnetic targets including Barns and Rifle Range. All are within 20km of Port Lincoln, an existing port capable of handling Panamax ships up to 15m draft.
More than 100 million tonnes of iron mineralisation has been identified in the Barns-Rifle Range area, most of it magnetite but with some hematite-goethite suitable for direct shipping. The magnetite requires processing into a high grade concentrate before it can be exported.
It has been proposed to export DSO from the main wharf at Port Lincoln using a containerised system similar to that being used at Port Adelaide in South Australia albeit with covered containers. Alternatively, it could be shipped out of the proposed bulk commodity port at Cape Hardy near Port Neill.
The Company has proposed a two-stage development option:
Stage 1: Mine and export up to 250,000 tonnes per annum DSO via Port Lincoln including upgrading 1.4 Mtpa lower grade (40-55% Fe) hematite-goethite-magnetite to DSO grade over a 4-5 year mine life.
Stage 2: Mine up to 10 Mtpa magnetite and process onsite to produce up to 2.5 Mtpa high grade concentrate for export via Port Lincoln or potentially Cape Hardy, subject to defining additional resources and over a mine life in the order of 20 years.
Planning has been undertaken for Stage 1 only, and groundwater licenses were obtained in 2014 to enable a Mineral Lease Application to be made. However, due to the depressed iron ore prices, the project has been temporarily put on hold.
Extending west from Port Lincoln with a railway line and major highway running through the area, EL 5811 is ideally located with respect to infrastructure and proximity to a major shipping port.
Gum Flat Mineral Resources
JORC 2012 Mineral Resource estimates for combined hematite-goethite and magnetite iron mineralisation at Gum Flat total 109 million tonnes (Mt). This includes a 12.3 Mt Indicated Mineral Resource for magnetite and a 1.4 Mt Indicated Mineral Resource for hematite-goethite at Gum Flat's Barns deposit.
The Barns magnetite Indicated Mineral Resource extends to at least 150 m below ground level, down dip of the Barns hematite-goethite Mineral Resource and currently planned quarry. The Mineral Resource assessment also confirmed the potential for high-grade magnetite blast furnace concentrates of around 66-68% Fe, with low silica and very low alumina and phosphorus.
In addition to these defined Mineral Resources, Gum Flat also contains iron ore Exploration Targets (**) in the Barns, Port Lincoln and Tulka areas totalling 250 million to 750 million tonnes at 20 35% Fe.
It is emphasized that Exploration Target tonnage and grade estimates are entirely conceptual in nature. There has been insufficient or no drilling in the immediate areas of these targets and it is uncertain if exploration will result in the estimation of a Mineral Resource.
|Prospect||JORC Status||Million Tonnes (Mt)||Head Grade (% Fe)||DTR (%)|
|Rifle Range magnetite2||Inferred||3.5||27.1||22.6|
|Rifle Range/Sheoak West hematite4||Inferred||2.2||39.5|
1 Barns magnetite interpretation based on notional 10% Davis Tube Recovery (DTR) cut-off
2 Rifle Range magnetite interpretation based on notional 15% DTR cut-off
3 Barns hematite interpretation based on notional 40% head Fe cut-off
4 Rifle Range and Sheoak West hematite interpretation based on notional 35% head Fe cut-off
DTR = magnetic Davis Tube Recovery Mt = million tonnes
Graphite - EL 5811
The Uley Graphite Mine is located approximately 2 km south along strike from Lincoln's Gum Flat EL 5811, which contains several exploration drill hole intersections.
Re-sampling of drill cuttings from Lincoln Minerals exploration holes previously drilled with a focus on iron ore revealed significant graphitic intervals in the Gum Flat area, located about 10 km north and along strike from the Uley Graphite Mine, e.g. 13m @ 12% total carbon from 57m depth in hole GFAC022.
There are also numerous occurrences and historic mines on Lincoln's tenements within 5km of Koppio, approximately 35km north of Port Lincoln.