How Freehill’s 65.75% Fe Magnetite Could Revive Yerbas Buenas Mine

High-Grade Magnetite Concentrate Achieved

Freehill Mining Limited (ASX:FHS) has announced a significant milestone in its Chilean operations with the successful production of a magnetite concentrate grading approximately 65.75% iron (Fe) from a 400-kilogram bulk sample taken from its 100%-owned Yerbas Buenas Mine. This result confirms the high quality of the ore and validates previous metallurgical test work, reinforcing the mine’s potential as a near-term revenue source.

Robust Processing and Testing Methodology

The bulk sample underwent a rigorous multi-stage crushing process, reducing the ore to 6 millimetres before passing through multiple rounds of magnetic drum separation. The crushed ore initially reported an iron grade of 43.84%, which was then refined to the final concentrate grade through classification and magnetic separation steps. An independent third party, San Lorenzo Chemical Laboratory in Chile, certified the chemical assay, lending credibility to the results.

Next Steps – Finer Crushing and Mine Planning

Encouraged by these findings, Freehill plans to conduct further test work on material crushed to 3 and 5 millimetres to explore the possibility of producing an even higher-grade concentrate. Concurrently, the company is advancing mine planning activities, reviewing permitting scenarios, and defining the capital expenditure required to recommence magnetite mining from the historical pit. These steps are critical to transitioning from test work to operational mining.

Strategic Outlook and Market Positioning

Chairman Ben Jarvis highlighted the marketability of the high-grade magnetite concentrate, noting its appeal to a broad range of potential customers and trading houses. CEO Paul Davies also emphasized the parallel progress in Freehill’s aggregates business, which is mobilizing at a new site with expansion opportunities on the horizon. Together, these initiatives underscore Freehill’s strategy to unlock value from its higher-value commodities portfolio.

Implications for Shareholders and Investors

This bulk sample result represents a tangible step toward generating near-term revenue with relatively low capital expenditure. However, the timeline for restarting mining operations will depend on the outcomes of ongoing test work, permitting processes, and final capital cost assessments. Investors will be watching closely for updates on these fronts as Freehill seeks to capitalize on the promising magnetite resource at Yerbas Buenas.