Striking while the iron is hot

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 23 Mar 2012   Posted by admin


AN inferred resource for Eastern Iron’s Nowa Nowa project has been announced, primarily using data from 40 diamond drill holes made during a 1950s Victorian Government exploration program.
The resource – at the lower cut-off grade of 40 per cent iron – includes 8.92 million tonnes at 49.2 per cent iron at the Five Mile deposit and 0.55mt at 48.3 per cent iron at the Seven Mile deposit, where there has been less historical drilling. ”It is encouraging to have defined a resource in a short period since acquiring the Nowa Nowa project and, as Eastern Iron’s primary focus, we will continue to investigate available options and scenarios for a potential mining and development with the objective of pursuing early stage cash flow generation,” Eastern Iron managing director Greg De Ross said. “This potential is enhanced by the availability of necessary power, roads and bulk commodity transport infrastructure in close proximity to the project,” he said.
“In addition to the potential to expand the resource through exploration of areas adjacent to the known deposits, the company is also planning large diameter core drilling to advance the metallurgical test work program, with results anticipated in the coming months.”
The company said Seven Mile could represent an opportunity to mine coarse direct shipping ore (DSO) lump hematite early in the life of the operation due to its proximity to the surface, but further drilling would be required to outline the mineralised area.
The mineralisation at Five Mile occurs at depth but is more substantial in size.
The company said additional resources were probable in the areas surrounding both deposits, including in a broad magnetic feature between
the two.

 

By Reuben Adams


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