The project, located just 30km south of Fortescue’s Solomon hub, has a DSO resource estimate of 108.5 million tonnes grading 58% iron, making it one of the largest undeveloped hematite detrital resources in the region.
With Solomon producing 65-70Mtpa at 56.9%, Equinox believes its product will find favour with Asian steel buyers.
Metallurgical test work shows that with post-screening and scrubbing the iron grades can be upgraded to 60-62%.
Managing director Zac Komur said the reinterpreted resource defined a significant hematite deposit that started just 20m below surface and had defined an “unprecedented exploration upside” given deeper drilling ended in 61.6% iron.
While the explorer has a lot on its plate trying to unlock rare earth elements in Brazil, Equinox is planning a 3300m infill drilling program later this year to unlock the higher-grade area grade region of the orebody.
The aim is to kick off a scoping study for the legacy project soon.
Given the proximity of infrastructure and the size of the deposit, Komur said Hamersley was well placed to be put on the fast-track to take advantage of iron ore prices that remain above US$100/t.
The project has a mining lease and native title agreement, albeit with some heritage issues that are still to be worked through.
A decision is expected in August.
While prior owners had completed two cultural heritage surveys in 2012 with no Aboriginal sites identified, with Wintawari Guruma Aboriginal Corporation signing a native title deed, and a mining lease being carved out of wider exploration licence, a more recent survey found two previously unidentified ethnographic sites.
Equinox said it had no choice but to file a Section 18 notice with the WA government after the WGAC opposed any further activity within the lease earlier this year.
The wider Hamersley project has resources of 343.2Mt grading 54.5%.
