Equinox Resources (ASX: EQN) Shines in Latest Quarterly Report

Key Highlights:

- Hamersley Iron Ore Project: Defined 108.5Mt high-grade DSO resource at 58% Fe.

- Financial Strength: Completed A$4 million placement, cash balance of $5.3 million.

- Leadership: Zac Komur appointed as Managing Director.

- Brazilian Rare Earths: Significant assay results and expanded land holdings.

Equinox Resources (ASX: EQN) has released its latest quarterly report for the period ending 30 June 2024, showcasing exciting progress across its key projects. These developments position the company for future success and growth.

Hamersley Iron Ore Project

Located in the Pilbara region of Western Australia, the Hamersley Iron Ore Project is shaping up to be a significant player in the iron ore market. The project now boasts a large high-grade Direct Shipping Ore (DSO) resource, totalling 108.5 million tonnes at 58% Fe. This resource starts just 20 meters below the surface, making it easy to mine due to its uniform nature and absence of harmful materials.

The project's strategic location near Fortescue Metals Group's Solomon Mining Hub, which has a production capacity of 65-70 Mtpa, adds to its value and logistical benefits. Recent drilling plans include 23 Reverse Circulation (RC) drill holes and six PQ3 diamond drill holes, aimed at increasing resource confidence and expanding the DSO material. One notable drill hole, PLRC0167, ended in mineralization with 61.6% Fe, indicating significant exploration potential. These efforts not only bolster the resource base but also enhance the project's attractiveness to potential partners and investors, paving the way for increased market presence.

Mata da Cordo Rare Earth Project

In Brazil, the Mata da Corda Rare Earth Elements (REE) project in Minas Gerais has shown promising results. During the quarter, surface samples confirmed high-grade rare earth clay mineralization, with grades up to 5,024 ppm TREO. Samples taken over 30 km² of the project area returned results exceeding 2,000 ppm TREO, suggesting the potential for a world-class, large-scale, high-grade Ionic Adsorption Clay (IAC) deposit. Additionally, the project area expanded by 127.80 km², bringing the total staked land holding to 974.98 km². This new ground is strategically located next to the Chumbo Prospect, which recently showed very high REE grades.

Progress and New Developments

After the quarter ended, Equinox received successful initial assay results from the maiden Phase I scout auger drilling program at the Rio Negro prospect, which included an intercept in clay of up to 6,085 ppm TREO. The RC drilling program is currently underway at the Campo Grande and Mata da Corda projects. These findings are crucial as they validate the project's potential and lay the groundwork for future resource expansion, making the project more valuable and appealing to stakeholders.

To strengthen their exploration capabilities, Equinox has added new talent to their Brazilian Rare Earth Exploration Team. Sérgio Luiz Martins Pereira, a highly experienced Chief Geologist with over 36 years in rare earth elements and base metals, has joined alongside Senior Geologist Leonardo Fraga. Together, they will drive strategic initiatives across Equinox's Brazilian portfolio. This bolstered team is expected to enhance the efficiency and effectiveness of exploration activities, leading to quicker and more precise project development.

Investor Insights

Equinox Resources Limited, trading as ASX: EQN, is a notable player in the mining sector, focusing on iron ore and rare earth elements. The company’s strategic projects in Western Australia and Brazil position it well for future growth. The recent updates and developments not only enhance the company’s resource base but also improve its financial stability and operational capabilities, setting the stage for long-term success.

Back of today’s ASX announcement $EQN shares surged by 5.56% and are trading at A$0.29 as of 3:00 PM AEST, 26th July 2024