RED HILL MINERALS LIMITED Level 2, 9 Havelock Street, West Perth WA 6005
PO Box 689, West Perth WA 6872
Telephone: (61 8) 9481 8627
ABN: 44 114 553 392
E-mail:redhillinfo@redhilliron.com.au
Website:www.redhilliron.com.au
29 April 2022
Company Announcements Office ASX Limited
Level 4, 20 Bridge Street SYDNEY NSW 2000
ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2022
Corporate
On 28 April 2022 the Board announced that it had resolved to pay a special dividend of $0.20 per share fully franked. This decision reflects the board objective of delivering funds to shareholders that it deems are in excess of the need to maintain a reasonable level of financial strength.
Red Hill Iron Limited (RHI) currently holds funds of around $83 million after paying instalments of income tax totalling $39 million.
Exploration Activities
The Company is ramping up exploration activity for gold and base metals across a 1,600 square kilometre contiguous tenement package (Figure 1), located adjacent to the western margin of the Hamersley Basin, over which it holds all mineral rights other than for iron ore. An exploration team is being established by Mike Wall, the Company's Exploration Manager, for a major expansion of the exploration effort dedicated to the appraisal of this project.
Work this quarter has been largely preparatory and focussed on data acquisition and the establishment of RHI geological database for gold and base metal targeting. The Company is currently carrying out a $300,000 core cutting and gold/base metal assaying campaign on selected portions of approx.1,788 metres of historic diamond drill core (Figure 1). Results are expected late in the next quarter as there have been significant delays from laboratories due to high demand and labour shortages due to the covid pandemic. Hylogger analysis of two diamond drill holes to assess mineral assemblages and alteration (from the Three Peaks and Kens Bore Gold targets) has been completed.
Work will continue next quarter to integrate and consolidate datasets relating to RHI gold and base metals to allow target ranking and the advancement of exploration activities. Arrangements are being put in place for RHI with Mineral Resources Limited (MRL), the manager of the Red Hill Iron Ore Joint Venture, to facilitate a reverse cycle (RC) drill programme on selected targets to be commenced next quarter.
A 5,426 line kilometre VTEM airborne survey using 200 metre line spacing has been scheduled by RHI for September 2022 to assist with target prioritisation and generation (Figure 1). This data set will complete the full coverage of the project area when merged with data from a previous EM survey flown by RHI over the southern portion of the tenements in 2006.
PANNAWONICA IRON ORE PROJECT
Red Hill Iron owns 100% of this project and is appraising the various development options.
Red Hill Iron continued work on remodelling and optimising the ore reserve base. The current Ore Reserve Statement is 4.68 million tonnes (Mt) at 56% Iron at a 54.5% iron cut-off grade (Refer ASX announcement of 23 July 2021) within a total project Mineral Resource of 62.5 million tonnes at 53.4% Iron (Refer ASX announcement of 14 April 2014).
Activity continued in order to have miscellaneous licences that will be required to allow transport of ores to port approved.
Mining Leases have been granted and a Heritage Agreement has been executed.
PAYMENTS TO RELATED PARTIES
The $ 107,000 cash outflow reported under Section 6.1 of the Appendix 5B Quarterly Cash Flow Report relates to director fees, director consulting fees and shared office and administration fees paid to a company of which a director is also a director of Red Hill Iron.
Authorised by the Board
Joshua Pitt
Chairman
Figure 1: Location Plan including diamond drillholes (assay results pending) and VTEM survey (scheduled for September 2022)
Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
Red Hill Iron LimitedABN
44 114 553 392
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| - (208) - - (71) (263) - 42 - (11,000) - - | - (653) - - (82) (2,855) - 82 - (22,000) - - |
(11,500) | (25,508) |
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) | entities | - | - |
(b) | tenements | - | - |
(c) | property, plant and equipment | (78) | (78) |
(d) | exploration & evaluation | - | - |
(e) | investments | - | - |
(f) | other non-current assets | - | - |
Page 1 |
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| - - - - - - - - | - - - - 200,000 - - - |
(78) | 199,922 |
| - - - (9) - - - - - | - - 2,113 (10) 220 (220) - (76,594) - |
(9) | (74,491) |
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Red Hill Iron Limited published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 06:11:07 UTC.
