The solution was to have four Defined Shapes, two for part of Core West (structural domain 1), one for Core East (structural domain 2) and one for part of the Fold area (structural domain 3) which resulted in Measured Resource being retained in these four defined areas. Outside the Defined Shapes the Measured Resource material was reallocated to Indicated Resource. The new Mineral Resource Estimates are reported at a 6% DTR cut-off grade, as advised by HIO, constrained by a pit shell supplied by HIO.

This pit shell went to a maximum RL of -360m, approximately 550m below surface. The Mineral Resources include a modest amount of transition and oxide material, approximately 9% of the total Mineral Resources. Comparison with the 2021 Mineral Resource update indicates a 29% increase in the size of the resource with a 21% increase in DTR tonnes.

The increased resource was accompanied by a 6.5% drop in the DTR grade with a 1.3% drop in iron concentrate grade to 68.9%. The increase in size is due to the additional drilling that converted previous exploration potential to Mineral Resource, the inclusion of more lower grade oxidised material and the inclusion of the newly confirmed Unit 2 rollover extension in the NW of the deposit. Also of note is a marked increase in the silica grade of the concentrate product, up from 2.8% to 3.5%.

This increase in grade has come from the recent HIO drilling of the Core East and particularly the Fold area. The change in grade is probably worth further inspection although HIO has informed H&SC that the change in grade is not significant to its product specifications. Measured and Indicated Resources increased by 108% in size with an 86% increase in DTR tonnes and a 10% drop in DTR grade, all due to the infill drilling.

Validation of the block model comprised a visual comparison between composite values and block grades, comparison with previous estimates and a range of statistical measures. Minor issues with the modelling were noted that are likely the result of some of the new data requiring additional review to confirm accuracy and the use of estimated grades from regression equations. Exploration potential for the main Hawsons deposit is defined as an Exploration Target of 0.8 to 1.2Bt with a DTR grade range of 10 to 12.5% and concentrate grade ranges of 67.5-69.5% Fe, 0.2 to 0.4% Al2O3, 0.007 to 0.011% P, 0.001 to 0.002% S, 3.5 to 4.8% SiO2, 0.04 to 0.065% TiO2 and -2.5 to -3% LOI.

The Exploration Target is based on material within the supplied pit shell not included in the Mineral Resource. This was the result of two additional search passes, Passes 5 & 6, which had search radii of 600m by 600m by 112.5m for a minimum of 6 and 3 data respectively and a minimum of 2 octants, at a cut-off grade of 6% DTR for all oxidation levels. 90% of the Exploration Target is fresh rock with the majority of it coming from the periphery to the current Mineral Resource.

The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Further infill drilling is required to further increase the confidence of the resource estimates with potential for additional material to be discovered along strike and down dip around the Fold hinge area and for the SE Limb area.

It is recommended that a full database audit is completed for both the 2009/2010/2016 and 2021/2022 drilling campaigns. Also, validation of the calibration of the downhole geophysics needs to be completed on a hole by hole basis. It is also recommended that a review of the sampling procedures is completed, which should include implementing improvements to the QAQC program.