Projects
Yalleen Iron Ore JV - Western Australia
Helix Resource Limited (30%), API (AMCI/Aquila) (70%) iron ore rightsHelix Resources Limited 100% other minerals
EL47/1169-1171
Project Summary
- 600km² tenement area located in the Pilbara region of WA, 50km SE of Pannawonica;
- API determined resource of 84.3 Mt @ 57.2% Fe for Kumina Creek and Robe Exit prospects based on drilling to December 2008;
- Exploration potential exists on identified targets to significantly increase existing resource;
- Development scenario assessment has commenced 1Q10
Project Background
The Yalleen Iron Ore JV Project covers approximately 600km² of the upper reaches of the Robe River drainage system. Pisolitic iron mineralisation in buried palaeodrainage systems developed from erosion of iron rich strata in the Hamersley Range to create a series of channel deposits within the drainage basins. These deposits are variably covered by younger unconsolidated alluvial sediments. The Brockman and Marra Mamba Formations, host to many of the major iron ore deposits in the Pilbara region of WA, form the main exposure in the project area.The Yalleen Joint Venture is managed by API Management Pty Ltd (API) for the Australian Premium Iron JV (Aquila/AMCI) and forms part of their larger West Pilbara Iron Ore Project (WPIOP) from deposits in separate joint ventures with Red Hill Iron Ltd and Cullen Resources Limited and their own projects. These projects are approximately 50-70 km southwest of the Yalleen Project area.
API’s exploration on Yalleen since 2005 has concentrated on definition of known channel iron targets at the Kumina Creek and Robe Exit prospects and exploration at the Bonham prospect (bedded and supergene iron).
Figure 1 – Yalleen Iron Ore JV location plan
Resource Estimate
Resource estimates have been finalised by API Management Pty Ltd for the Kumina Creek, Robe Exit deposits located within the Yalleen Joint Venture. API Management Pty Ltd has completed the resource estimates applying industry standard estimation techniques. Resource estimates have been checked and audited by API| YALLEEN JOINT VENTURE CHANNEL IRON DEPOSITS | |||||||||
| Deposit | Tonnes | Fe | SiO2 | Al2O3 | P | S | LOI | Mn | MgO |
| Mt | % | % | % | % | % | % | % | % | |
| Kumina Creek Deposit | |||||||||
| Measured | - | - | - | - | - | - | - | - | - |
| Indicated | 34.96 | 57.53 | 5.18 | 3.70 | 0.060 | 0.015 | 8.24 | 0.06 | 0.11 |
| Inferred | 23.61 | 57.53 | 5.19 | 3.77 | 0.060 | 0.015 | 8.15 | 0.07 | 0.11 |
| Total | 58.57 | 57.53 | 5.18 | 3.73 | 0.060 | 0.015 | 8.20 | 0.06 | 0.11 |
| Robe Exit Deposit | |||||||||
| Measured | - | - | - | - | - | - | - | - | - |
| Indicated | 12.91 | 56.50 | 5.52 | 3.74 | 0.053 | 0.018 | 9.41 | 0.05 | 0.14 |
| Inferred | 12.82 | 56.32 | 5.45 | 3.89 | 0.064 | 0.016 | 9.31 | 0.03 | 0.11 |
| Total | 25.73 | 56.41 | 5.49 | 3.81 | 0.058 | 0.017 | 9.36 | 0.04 | 0.12 |
| Total Resource - CID | |||||||||
| Measured | - | - | - | - | - | - | - | - | - |
| Indicated | 47.87 | 57.25 | 5.27 | 3.71 | 0.058 | 0.016 | 8.56 | 0.06 | 0.12 |
| Inferred | 36.43 | 57.10 | 5.28 | 3.81 | 0.061 | 0.015 | 8.56 | 0.06 | 0.11 |
| Total | 84.30 | 57.19 | 5.28 | 3.75 | 0.060 | 0.016 | 8.56 | 0.06 | 0.11 |
Estimation Process
Geological Interpretation
Three-dimensional geological interpretations have been completed for each deposit. Interpreted geological boundaries are based on drill hole data, surface mapping and constraining topography.A summary of total drilling by deposit is tabulated below.
| Deposit | Number of holes drilled | Metres Drilled |
| Yalleen Joint Venture | ||
| Kumina Creek Deposit | 153 | 4,032 |
| Robe Exit Deposit | 112 | 3,283 |
Diamond drilling was the primary drilling method undertaken within the Kumina Creek resource area whilst Reverse Circulation drilling was the primary sole drill technique used to assess the Robe Exit resource area.
Mineralised envelopes were defined by geological / assay boundaries at notional +54% Fe cut-off for the Kumina Creek and Robe Exit resources pisolitic channel iron deposits.
Internal dilution was kept to a minimum provided continuity of the mineralised envelopes could be maintained. Zones of lower grade ranging 52-54% Fe for Kumina Creek and Robe Exit were incorporated into the mineralised envelopes if the geological continuity could not be maintained.
Mineralised envelopes were constrained by the CID unit identified in the geological model.
The mineralised zones were used to define spatial regions for statistical and geostatistical analysis.
For statistical data analysis, exploration data was composited to 1m downhole lengths for the Kumina Creek deposit and 2m downhole lengths for the Robe Exit deposits. Analysis was based on eight assay variables: Fe, SiO2, Al2O3, P, S, Mn, MgO and LOI (LOI 1000oC).
All composites were flagged to the spacial domain for statistical analysis.
Directional grade variography was completed for all domains at both Kumina Creek and Robe Exit to provide parameters for the Ordinary Kriging method used for resource estimation.
For grade estimation of the CID’s a minimum of three passes of increasing search distances was employed to interpolate all the blocks within the ore and waste domains.
Cut-off Grades
All resource estimates are reported applying iron cut-off’s determined from grade tonnage curves. A 54% lower cut-off grade for iron (Fe) has been applied to the resource model for the Kumina Creek and Robe Exit deposits.Reporting
The resource estimates have been compiled in accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition). The resource statement is to be signed off by Mr Stuart Tuckey as an employee of API Management Pty Ltd. Mr Tuckey is a Member of the Australasian Institute of Mining and Metallurgy.Full details on the resource estimation parameters can be viewed in the 24 April 2009 ASX release on the Company’s website: www.helix.net.au
Competent Person Statement
The information in this report that relates to the Kumina Creek and Robe Exit Mineral Resources is based on information compiled by Mr Stuart H Tuckey. Mr Tuckey is full-time employee of the API Management Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’.Helix comments on the Yalleen Project
1. The resource estimate by API in April 2009 shows improved iron grade and higher levels of confidence in CID distribution from the initial resource released by Helix in June 2008.2. API is investing significant funds in completing a Definitive Feasibility Study for Stage 1 of the WPIOP which whilst not specific to the Yalleen JV, will provide useful technical and economic information.
3. The Rio Pannawonica rail line is situated less than 12kms from the Kumina Creek deposit. With the 3rd party infrastructure access debate escalating, alternates for transport may emerge which may lessen capital expenditure and potentially shorten any future development timelines.
4. The JV currently operates under a Heads of Agreement whilst formal documentation is negotiated.