Nov 20, 2024

Fenix Resources Hits 163m @ 66% Fe at Iron Ridge Project, Western Australia

Introduction:

Fenix Resources Limited (ASX: FEX) (Market Cap: $184M | Last Close: $0.255 | Cash: $72M) has reported exceptional iron ore drill results from its Iron Ridge Project in Western Australia, highlighted by 163 metres at 66% Fe from 138.1m. The results are part of a resource expansion program and demonstrate potential to extend the current mine life.

Drill Results:

163m @ 66% Fe from 138.1m (EXDD002)
98m @ 64% Fe from surface (FWDD007)
57m @ 63% Fe from 115m (FWRC002)
21m @ 65% Fe from 81m (FWRC001)
19m @ 62.8% Fe from 79m (FWRC009)‍
10.4m @ 60.3% Fe from 171.6m (EXDD001)

Project Overview:

The Iron Ridge Project is located in the Mid-West region of Western Australia, approximately 360km northeast of Geraldton. It lies within the Weld Range greenstone belt, known for its iron-rich banded iron formations. The project benefits from established infrastructure access and represents a premium high-grade, high-margin direct shipping iron ore operation.

Iron Ridge currently has a production run rate of 1.4 million tonnes per annum, with plans to substantially increase this through the addition of the Shine Iron Ore Mine and Beebyn-W11 Project. The deposit is characterized by high-grade hematite-goethite mineralization concentrated along structurally favourable zones.

Program Details:

The recent exploration program, conducted from July to October 2024, focused on in-pit drilling to enhance resource confidence and support mine design. Drilling targeted the main hematite ore zone referred to as the "Big BIF". Additionally, a high-resolution aeromagnetic survey was completed in August 2024, providing critical sub-surface insights and improved geological understanding of the Iron Ridge mineralization and potential extensions.

Understanding These Results:

The reported intersections represent significant high-grade iron ore mineralization, with grades consistently above 60% Fe. The long intercepts, particularly the 163m at 66% Fe, demonstrate the exceptional quality and continuity of the hematite resource at Iron Ridge.

These results extend the known mineralization along 380 metres of strike length, remaining open to the southwest and at depth within the mining lease. The high grades and substantial widths are indicative of a robust iron ore system with potential for resource expansion and mine life extension.

Management Commentary:

John Welborn, Executive Chairman of Fenix Resources, stated:

“These fabulous results have been generated from the first exploration activity Fenix has conducted at Iron Ridge since the pre-mining exploration program was completed in 2019. The results highlight the quality and continuity of our exceptionally high-grade hematite resource. Mineralisation is now defined along 380 metres of strike length and remains open to the southwest and at depth within the Iron Ridge mining lease.”

“An update to the resource estimate and further exploration will flow through into our mine planning work and will provide the opportunity to optimise our existing mine plan and assess potential to extend the mine life at Iron Ridge. Important heritage exclusions zones exist in close proximity to the current pit and Fenix will ensure that any extension of the Iron Ridge mine plan respects these exclusion zones and appropriately preserves important heritage.”

“In addition to the further high-grade mineralisation this drilling has identified underneath and along strike from the existing pit, the aeromagnetic survey has identified several prospective near-mine hematite targets on the tenement that justify follow up drilling.”

Next Steps & Catalysts:

Fenix has commenced work on preparing an updated Mineral Resource Estimate (MRE) for Iron Ridge, expected to be completed in the current quarter. The company intends to use these results to update the MRE and model potential extensions of the Iron Ridge Mine Plan.

Further exploration on high-priority targets within the Iron Ridge tenement is planned for early 2025. The company will also assess opportunities to optimize the existing mine plan and evaluate the potential to extend the mine life at Iron Ridge.

Commodity Outlook:

Iron ore continues to be a critical commodity for global steel production. The high-grade nature of the Iron Ridge deposit (>60% Fe) positions it favorably in the market, as steel producers increasingly seek higher-grade feedstock to improve efficiency and reduce emissions. Western Australia remains a premier iron ore jurisdiction with established infrastructure and a supportive regulatory environment.

Conclusion:

The latest results from Iron Ridge demonstrate potential to expand the current resource base and extend the mine life. With mineralization remaining open along strike and at depth, and additional hematite targets identified through geophysical surveys, the project continues to demonstrate characteristics of a high-quality iron ore deposit with growth potential.

Sources:

FEX Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 6, 2024