Freehill Targets 5,000 Tonnes/Month Restart with 65.75% Fe Magnetite Sample
Freehill Mining is progressing towards restarting operations at its Yerbas Buenas magnetite mine with a targeted six-month timeline, while exploration at the adjoining El Dorado project reveals promising magnetite and copper-gold potential.
- Stage 1 mining permit extension underway for 5,000 tonnes/month at Yerbas Buenas
- Recent bulk sample at Yerbas Buenas yielded 65.75% iron grade magnetite
- Surface sampling at El Dorado shows magnetite grades between 34.6% and 50% Fe
- Mine planning and capex/opex definition in progress under experienced management
- Further exploration and bulk sampling planned to refine resource and product quality
Restarting Yerbas Buenas – A Stepwise Approach
Freehill Mining Limited (ASX – FHS) is steadily advancing plans to recommence mining at its 100%-owned Yerbas Buenas magnetite mine in Chile. Following a successful bulk sampling exercise in June that produced a high-grade magnetite concentrate of 65.75% iron from material crushed to 6 millimetres, the company is focusing on extending its current small-scale mining permit. This extension would allow extraction of up to 5,000 tonnes per month under a Stage 1 operation, providing a platform to establish stable production and sales.
Experienced mining engineer Jaime Varela has been appointed to oversee mine planning and permit extension efforts. The company anticipates the permitting process with Chile’s mining authority, Sernageomin, to take between 90 and 120 days, targeting a restart of mining operations within six months. Concurrently, Freehill is defining capital and operating expenditures to ensure the Stage 1 operation is economically viable.
Exploration Upside at El Dorado
Adjacent to Yerbas Buenas, the El Dorado project is showing encouraging signs of mineralisation. Recent surface sampling returned magnetite grades ranging from 34.6% to 50% iron, with assays also indicating the presence of copper and gold. While these results are preliminary and based on surface samples and trenching, they highlight the potential for a polymetallic deposit that could complement the magnetite operations.
Freehill has renewed exploration tenements at El Dorado and plans further work to test the extent and grade of mineralisation. Gold assay results from recent sampling are pending, and the company is considering additional surface sampling, mapping, trenching, and possibly drilling to better define the resource.
Strategic Focus on Low Capex, Fast Start
Freehill’s management emphasises a strategy centred on low capital expenditure and rapid revenue generation. The staged approach at Yerbas Buenas aligns with this philosophy, allowing the company to build cash flow and operational experience before pursuing a larger-scale mining operation. The broader mineral resource estimate at Yerbas Buenas stands at 67 million tonnes, indicating significant upside potential beyond the initial permit extension.
Additionally, Freehill is advancing its aggregates business near the La Serena/Coquimbo region, further diversifying its revenue streams. The company is actively marketing its bulk samples to potential customers to establish sales channels ahead of production restart.
Looking Ahead
With mine planning progressing and exploration results providing promising leads, Freehill Mining is positioning itself for a measured but potentially rewarding ramp-up in Chile. The next six months will be critical as permitting decisions, assay results, and operational preparations converge to shape the company’s near-term trajectory.
Bottom Line?
Freehill’s methodical restart and exploration efforts could unlock significant value if permit approvals and assay results continue to support development.
Questions in the middle?
- When will the gold assay results from El Dorado sampling be released, and how might they impact project economics?
- What are the finalized capital and operating cost estimates for the Stage 1 Yerbas Buenas operation?
- How will Freehill manage scaling from the initial 5,000 tonnes per month permit to a larger mining operation?
