en.Wedoany.com Reported - Macro Metals has signed a binding heads of agreement to acquire the Yandi South iron ore project in Western Australia from Western Ore Iron. The transaction involves three granted exploration licenses covering a total area of 56 square kilometers, located 5 kilometers southeast of BHP's Yandi project and 17 kilometers southeast of Macro's 27.3%-owned Extension iron ore project.
Under the terms of the agreement, Macro will pay Western Ore Iron an upfront payment and deferred consideration totaling $6.5 million, payable in seven installments, plus a 3% royalty on the first 4.275 million dry metric tons sold, and 5% on subsequent tonnage. The Yandi South project has historical indicated mineral resources reported in accordance with the JORC 2004 guidelines, totaling 4.28 million tons at 55.8% iron, with a core portion of 1.9 million tons at 58% iron.
Macro Metals Managing Director Simon Rushton stated that the project provides the company with additional previously classified channel iron deposit material, located in close proximity to the Extension project. Rushton noted that the technical team has already identified numerous additional unexplored channel iron deposit and bedded hematite mineralization zones during due diligence, which will be the focus of near-term exploration efforts. Additionally, there is significant exploration upside in the project for finding more hematite resources and potentially important magnetite ore bodies.
The historical resource covers approximately 10% of the acquired tenement area, meaning most of the project remains underexplored. Rock chip sampling results show that 16 samples from geological mapping within and adjacent to the resource area have iron grades exceeding 60%. Previous diamond drilling in the northwestern section also intersected a magnetite enrichment zone up to 150 meters thick from surface, with metallurgical testing confirming concentrate recovery of up to 69% iron grade.
Macro stated that it has applied for an additional 46 square kilometers of adjacent tenements, which would expand the combined project area to approximately 100 square kilometers. Near-term work plans include field mapping, rock chip sampling, magnetite metallurgical testing, stakeholder engagement, and updating the resource model to JORC 2012 standards.
Macro Metals is a mineral exploration and development company, as well as a mining and mining services enterprise, with a portfolio of iron ore, manganese, and construction materials assets.
