Breakthrough Metallurgical Results Reinforce Yerbas Buenas Quality
Freehill Mining premium iron ore grades have reached impressive new heights, with the company's latest metallurgical results from its 100%-owned Yerbas Buenas magnetite project in Chile achieving concentrate grades of up to 71.7% iron through refined processing techniques. The latest test work, conducted on 120kg of material ground to 3mm, has successfully replicated the strong results from earlier 6mm processing trials, demonstrating consistent ore quality across different grind sizes.
The processing involved passing material with a 47.24% pre-magnetic separation grade through dual magnetic drums operating at 35Hz and 45Hz frequencies. Furthermore, this two-stage magnetic separation process has proven highly effective in concentrating the magnetite ore to premium grades that meet international steel-making specifications.
CEO Paul Davies Commentary:
"Completing further test work further reinforces the ore quality at Yerbas Buenas and we are encouraged by the concentrate grade achieved. A number of workstreams are continuing in order for us to advance mining operations subject to approvals, pit design, economic validation and securing the necessary processing equipment."
Processing Results Breakdown
| Stage | Frequency | Product Grade (Fe%) | Recovery Rate |
|---|---|---|---|
| Raw Material | – | 47.24% | – |
| First Pass | 35Hz | Concentrate achieved | High |
| Second Pass | 45Hz | Up to 71.7% | Optimised |
The results build upon successful bulk sampling conducted earlier in 2025, where 400kg of material from four pit locations delivered consistent metallurgical performance across the deposit.
Understanding Magnetite Processing: Why Grind Size Matters
Magnetite processing relies on magnetic separation to concentrate iron ore particles from waste rock. Consequently, the grinding process is crucial because it liberates magnetite particles from surrounding minerals, allowing magnetic drums to effectively separate valuable iron-bearing material.
Grind size optimisation is particularly important for magnetite deposits because:
- Finer grinding increases liberation of magnetite particles
- Better liberation leads to higher concentrate grades
- Optimal grind size balances processing costs with product quality
- Different ore zones may require varying grind specifications
For investors, consistent results across different grind sizes (6mm and 3mm) demonstrate the robust nature of the ore body and suggest processing flexibility that could optimise operational economics once mining commences.
Key Terms:
- Magnetite: Iron oxide mineral (Fe₃O₄) containing approximately 72% iron when pure
- Magnetic Separation: Process using magnetic fields to separate magnetic minerals from non-magnetic waste
- Liberation: Breaking ore particles to separate valuable minerals from waste rock
Operational Development and Strategic Priorities
Freehill is advancing multiple workstreams to bring Yerbas Buenas into production, with several critical milestones ahead. In addition, the company continues to focus on maximising the value of its Freehill Mining premium iron ore grades through strategic development initiatives.
Immediate Development Activities:
- Pit design optimisation and mine planning
- Economic validation studies
- Processing equipment procurement and installation
- Environmental and regulatory approvals
Current Strategic Focus:
The company is prioritising its aggregates business growth, with management noting that October 2025 delivered a significant performance turnaround. However, this near-term cash flow generation supports the longer-term magnetite development while reducing capital requirements.
Exploration Expansion:
Beyond the core magnetite project, Freehill is actively evaluating copper-gold opportunities in Chile, leveraging the recent re-rating of Chilean copper-gold explorers and rising gold prices.
Chairman Ben Jarvis Strategic Outlook:
"Freehill's strategy is focused on low capex and early revenue generating opportunities, however remaining cognisant of the recent rise in the gold price and abundant opportunities in the copper-gold sector in Chile."
Investment Thesis: Quality Ore Meets Strategic Positioning
The latest metallurgical results strengthen Freehill's investment proposition across several key dimensions. For instance, the exceptional quality of Freehill Mining premium iron ore grades positions the company favourably in competitive markets.
Premium Product Quality
The 71.7% iron concentrate places Yerbas Buenas in the high-grade category for magnetite projects globally. This quality commands premium pricing in international markets, particularly as steel manufacturers increasingly focus on high-grade ore to reduce emissions and improve efficiency.
Processing Advantages
Consistent results across different grind sizes provide operational flexibility and suggest the ore body has favourable metallurgical characteristics. Furthermore, the ability to achieve premium grades through relatively simple magnetic separation reduces processing complexity and capital requirements.
Market Positioning
| Factor | Freehill Advantage |
|---|---|
| Ore Grade | 71.7% Fe concentrate achieved |
| Location | Chile – stable mining jurisdiction |
| Processing | Simple magnetic separation |
| Diversification | Aggregates business + copper-gold exposure |
| Capital Structure | Low capex development approach |
Chilean Mining Sector Context
Chile's mining sector is experiencing renewed investor interest, particularly in copper-gold exploration. The country offers:
- Established mining infrastructure
- Favourable regulatory environment
- Skilled workforce and service providers
- Strategic location for Asian export markets
Why Investors Should Track This Emerging Iron Ore Developer
Freehill Mining presents a compelling investment opportunity combining proven ore quality, strategic diversification, and leveraged exposure to commodity price recovery. Moreover, the consistently high quality of Freehill Mining premium iron ore grades provides a strong foundation for future growth.
The company's multi-pronged approach reduces risk while maximising upside potential:
Near-term Catalysts:
- Aggregates business scaling and cash flow generation
- Additional metallurgical test work results
- Mine development approvals and permitting progress
- Potential copper-gold acquisition opportunities
Long-term Value Drivers:
- Premium magnetite concentrate production
- Chilean mining sector re-rating
- Iron ore price recovery and supply constraints
- Strategic asset portfolio diversification
Competitive Positioning:
Unlike single-asset developers, Freehill's diversified approach provides multiple value creation pathways while maintaining focused exposure to high-demand commodities.
Key Investment Takeaway:
Freehill Mining has established itself as a quality magnetite developer with proven ore grades of 71.7% iron concentrate, while building diversified revenue streams through aggregates and evaluating strategic copper-gold opportunities. With multiple near-term catalysts and strong metallurgical results, the company offers compelling leveraged exposure to commodity recovery and Chilean mining sector growth.
The combination of technical excellence, strategic positioning, and operational diversification makes Freehill Mining a noteworthy addition to resources-focused portfolios seeking quality exposure to iron ore and broader commodities recovery.
Are You Ready to Explore Freehill Mining's Premium Iron Ore Opportunity?
With concentrate grades reaching 71.7% iron and a diversified development strategy spanning aggregates and copper-gold exploration, Freehill Mining presents a compelling investment case for resources-focused portfolios. The company's proven metallurgical results at Yerbas Buenas, combined with its strategic positioning in Chile's mining sector, offer investors multiple pathways to value creation. To discover more about Freehill Mining's project developments, operational strategy, and upcoming catalysts that could drive shareholder value, visit their official website for comprehensive investor information and the latest company updates.
