19 August 2016
The Companies Officer Australian Stock Exchange Ltd Level 40, Central Park
152-158 St Georges Terrace Perth WA 6000
Dear Sir/Madam
Fortescue Ore Reserves and Mineral Resources Update
Fortescue Metal Group (ASX:FMG, Fortescue) presents the Ore Reserves and Mineral Resources statement for its Hematite and Magnetite properties at 30 June 2016.
Ore Reserves and Mineral Resources are reported in accordance with the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, December 2012 (the JORC Code) as required by the Australian Securities Exchange. The annual summary will be included in Fortescue's 2016 Annual Report and should be read in conjunction with the enclosed supporting technical information (Attachment 1 - Hematite Ore Reserve and Mineral Resources Report and Attachment 2 - Magnetite Ore Reserve and Mineral Resources Report).
Hematite Ore Reserve and Mineral Resource - Operating Properties
Reporting 30 June 2016
|
30 June 2015
|
Basis
|
Million tonnes
|
Fe
|
Million tonnes
|
Fe
|
Ore Reserves
|
(Dry Product)
|
2,173
|
57.2%
|
2,400
|
57.3%
|
Mineral Resources
|
(Dry In-Situ)
|
5,261
|
56.0%
|
5,415
|
56.2%
|
Operating properties include the Chichester and Solomon Hubs. Ore deposit types include Bedded Iron (BID), Channel Iron (CID) and Detrital Iron (DID) mineralisation.
The Iron Bridge Magnetite resource has continued to grow, with an increase in the Magnetite Mineral Resource from the discovery of the new Eastern Limb ore body, adjacent to the North Star ore body.
Fortescue Metals Group Limited PO Box 6915
ABN 57 002 594 872 East Perth, Western Australia
Level 2, 87 Adelaide Terrace P +61 8 6218 8888 East Perth, Western Australia 6004 E [email protected]
Page 2 of 2
Magnetite Ore Reserve and Mineral Resource - Operating Properties
Reporting
|
30 June 2016 30 June 2015
|
Basis
|
Million tonnes
|
Fe%
|
Million tonnes
|
Fe%
|
Ore Reserves
|
(Dry In-Situ tonnes prior to processing and product grades)
|
705
|
67.2
|
705
|
67.2
|
Mineral Resources
|
(Dry In-Situ tonnes and grades)
|
6,706
|
31.4
|
5,504
|
31.4
|
The Iron Bridge Magnetite project is an Unincorporated Joint Venture (UJV) between FMG Iron Bridge Limited 69% (88% Fortescue and 12% Baosteel) and Formosa Steel IB Pty Ltd 31% (a 100% owned entity of Formosa Plastics Group).
Chief Executive Officer, Mr Nev Power said "Fortescue is committed to maintaining a long term resource base, while continuing our focus on sustained cost reduction. Our large tenement position in the Pilbara supports a long life production profile, and includes low cost growth options to meet future market demand."
Yours sincerely
Fortescue Metals Group Ltd
Ian Wells
Company Secretary
Media contact: Investor Relations contact:
Luke Forrestal Stuart Gale
E: [email protected] E: [email protected]
M: +61 411 479 144 P: +61 8 6218 8888
Attachment 1 - Hematite Ore Reserves and Mineral Resources Report
FMG Hematite Mineral Resource Reporting
as at June 30th, 2016
Chichester Deposits (Christmas Creek & Cloudbreak)
Geology
The Cloudbreak and Christmas Creek deposits lie within the Chichester Ranges, in northern Western Australia. Iron mineralisation is hosted by the Nammuldi Member which is the lowest member of the late Archaean aged Marra Mamba Iron Formation (MMIF). The Nammuldi Member is characterised by extensive, thick and podded iron rich bands, separated by equally extensive units of siliceous and carbonate rich chert and shale. The Nammuldi Member in the Chichester Range is interpreted to be up to 60 metres in true thickness. Underlying the Nammuldi Member rocks are black shales and volcanic rocks belonging to the Jeerinah Formation. Extended periods of tectonic activity have variably folded and faulted these rocks, together with weak metamorphism. Subsequent erosion and hardcapping or lateritic processes have altered these rocks, and present outcrop of Nammuldi Member represents a ridge of low- lying hills (relief up to 30 metres) throughout the prospect areas. These ridges are recognised as the Chichester Ranges.
Drilling within the prospects has proved that the Nammuldi target horizon extends below cover away from the hills. In these regions (recognised mineralisation has been intersected more than 6 kilometres from the outcrop) the target iron formation can be overlain by Tertiary age colluvium and alluvium (younger than 65 Million years). This colluvium can contain both cemented and un-cemented detrital products of iron enriched material, BIF, chert and shale within a matrix of finer grained sediments (including clays).
Percolation of groundwater through the weathering profiles has resulted in precipitation of both calcrete and ferricrete creating resistant horizons within the extensive regolith. More proximal to the Fortescue Marsh to the south, the Tertiary sediments become finer grained and more clay dominant, with some recognised calcareous zones. A simplified geological cross section through the Chichester Ranges is shown in Figure
1. A typical stratigraphic section of the Chichester Ranges is shown in Figure 2.
Figure 1
Simplified Schematic geological section through Chichester Ranges
TARGET INTERVAL, NAMMULDI ORE
Hardcap and detritals
20 METRES
Alluvial Overburden
Nammuldi ore horizon
Footwall BIF + shales
UP TO 4000 METRES