Freehill Targets 5,000 Tonnes Monthly at Yerbas Buenas After 65.75% Fe Sample
Freehill Mining is progressing plans to restart mining at its Yerbas Buenas magnetite project in Chile, backed by promising bulk sampling results and a staged permit extension strategy.
- Stage 1 mining permit extension submitted for 5,000 tonnes per month
- High-grade bulk sample of 65.75% iron achieved from Yerbas Buenas
- Experienced engineer appointed to lead mine planning and operations
- Further sampling and test work planned to optimize product grade and costs
- Exploration at adjoining El Dorado project reveals encouraging magnetite grades
Mining Restart Strategy
Freehill Mining Limited is making tangible progress toward restarting operations at its 100%-owned Yerbas Buenas magnetite mine in Chile. The company has submitted an application to extend its current small-scale mining permit, allowing extraction of up to 5,000 tonnes per month under a Stage 1 operation. This approach reflects a cautious but pragmatic strategy to re-enter production quickly while establishing a stable revenue base.
Leading the mining planning effort is Jaime Varela, an experienced engineer tasked with overseeing pit design updates, capital and operating cost assessments, and coordination with local contractors. The company anticipates the permitting process to take between 90 and 120 days, with a target to recommence mining within six months.
Encouraging Bulk Sampling Results
Recent bulk sampling at Yerbas Buenas has delivered a high-grade magnetite concentrate, with a 400-kilogram sample crushed to 6 millimeters yielding 65.75% iron content. This result confirms the quality of the deposit and supports Freehill’s plan to market the product to trading houses and potential off-takers. Further test work is underway to evaluate crushing to finer sizes (3 and 5 millimeters) to determine if higher-grade concentrates can be produced cost-effectively.
Exploration Upside at El Dorado
Beyond Yerbas Buenas, Freehill is advancing exploration at the adjacent El Dorado Cu-Au-Fe project. Surface sampling has returned magnetite grades exceeding 50% iron in previously unexploited areas, indicating promising mineralization that warrants further investigation. Gold assay results are pending, potentially adding another dimension to the project’s value proposition.
Operational and Strategic Outlook
Freehill’s management emphasizes a low capital expenditure, fast startup approach to generate near-term revenue. The company is actively defining capital and operating costs for Stage 1 and marketing bulk samples to establish sales channels. With a defined mineral resource estimate of 67 million tonnes at Yerbas Buenas, the longer-term potential for scaled-up operations remains significant once the initial phase proves profitable and stable.
Chairman Ben Jarvis highlighted the company’s focus on opportunities that combine low capex with higher-value commodities, signaling a broader strategic intent beyond magnetite. Meanwhile, CEO Paul Davies expressed confidence in the local contractor partnerships and the technical team’s ability to deliver the restart on schedule.
Bottom Line?
Freehill’s staged restart at Yerbas Buenas sets the stage for a potentially transformative ramp-up, but permit approvals and further test results will be critical milestones to watch.
Questions in the middle?
- Will Freehill secure the permit extension within the projected 90-120 day timeframe?
- How will finer crushing impact concentrate grade and processing costs?
- What commercial arrangements are being pursued to secure off-take agreements?
