Freehill’s Yerbas Buenas Bulk Sample Yields 65.75% Fe Concentrate

High-Grade Magnetite Concentrate Achieved

Freehill Mining Limited (ASX, FHS) has announced a significant milestone in its Yerbas Buenas magnetite project in Chile, producing a bulk sample concentrate grading approximately 66% iron (Fe). The 400-kilogram sample underwent magnetic test work using the company’s processing plant, delivering a concentrate grade of 65.75% Fe after crushing to 6 millimeters. This result marks a noteworthy improvement from the initial ore head grade of 43.84% Fe, demonstrating the potential for high-quality magnetite production.

Stepwise Processing Validates Magnetic Separation

The test work involved several stages, including classification by mesh size and magnetic drum separation at varying drum speeds. The process successfully concentrated the iron content, with the final product showing excellent magnetic properties. An independent laboratory, San Lorenzo Chemical Laboratory in Chile, certified the chemical composition, lending credibility to the findings. This methodical approach underscores Freehill’s technical capability and the robustness of the Yerbas Buenas ore body.

Advancing Towards Mining Resumption

Encouraged by these results, Freehill is moving forward with further test work, including trials with finer crushing sizes of 3 and 5 millimeters to explore the possibility of producing even higher-grade concentrates. Concurrently, the company is progressing mine planning, evaluating permitting scenarios, and defining the capital expenditure required to restart magnetite mining from the historical pit. These steps are critical to transitioning from exploration and test work to commercial production.

Strategic Outlook and Market Potential

Chairman Ben Jarvis highlighted the marketability of the high-grade magnetite concentrate, noting its appeal to a broad range of potential customers and trading houses. CEO Paul Davies also emphasized the parallel development of Freehill’s aggregates business, which is advancing towards site mobilisation and expanding supply agreements. Together, these initiatives suggest a diversified growth strategy that could enhance shareholder value in the near term.

Looking Ahead

While the company has not yet provided detailed timelines or capital cost estimates, the positive test results and ongoing planning activities signal a clear intent to recommence mining operations. Investors and market watchers will be keen to see how Freehill navigates permitting hurdles and finalises its operational scale, as well as how it leverages its magnetite asset alongside its aggregates business.