Adelaide, Feb 13, 2007 (ABN Newswire) - Iron ore developer FerrAus Limited, is pleased to announce the first assay
results from Stage 3 RC drilling at its Robertson Range iron ore project in
the East Pilbara region of Western Australia.
Significant intersections of iron mineralisation, generally containing higher
grade >60% Fe, extend at depth to the east in the North & South Zones.
NORTH ZONE
RRRC 152 20 metres @ 61.2% Fe
RRRC 153 18 metres @ 61.9% Fe
RRRC 154 18 metres @ 60.9% Fe
RRRC 155 12 metres @ 61.6% Fe
RRRC 156 14 metres @ 62.0% Fe
SOUTH ZONE
RRRC 158 40 metres @ 58.3% Fe
RRRC 160 32 metres @ 61.0% Fe
RRRC 166 34 metres @ 59.9% Fe
RRRC 167 30 metres @ 60.5% Fe
RRRC 171 22 metres @ 60.7% Fe
RRRC 175 10 metres @ 61.1% Fe
Comments on Significance of Results
- Higher grade iron mineralisation at depth reinforces the geological interpretation made in recent ASX announcements. This will likely have a positive impact on resource grade and product quality.
- In the South Zone, iron mineralisation is thicker and higher grade than identified in previous drilling and extends in a southwest direction as interpreted from the recent gravity survey.
- Due to these significant results, a Reverse Circulation (RC) drilling program has been "fast tracked" in order to complete reserve delineation on the North & South Zone.
- Final assay results of Stage 3 RC drilling are expected during February 2007.
Stage 3 RC Drilling & Future Program
The Stage 3 RC drilling program (30 holes for 2,767 metres) was completed during late 2006 to establish the extent of iron mineralisation and further define the resource.
Assay results have been received from an initial 18 drill holes located in both the North and South Zone. Significant iron mineralisation with intersections of >58% Fe and a cutoff of 55% Fe are included as Table 1.
Iron mineralisation is confirmed to extend at depth to the east in both the North & South Zones, where it generally contains >60% Fe. This higher grade iron mineralisation occurs below "hardcap mineralisation" and generally occurs below the water table (~40 metres). The hardcap mineralisation contains 56-58%Fe with higher silica content.
Phosphorus content of the iron mineralisation is generally low-moderate (0.06-0.11%P), while limited areas with high phosphorus contents (>0.12%P) are seen associated with increased hydration and manganese. Penfold Limited, a marketing company and major FerrAus shareholder, has confirmed with Asian steel mills that iron ore products containing 0.08- 0.12%P are acceptable and remain in demand as blending feedstocks. The level of other contaminant elements (Al2O3, SiO2, Mn, S) were also confirmed as acceptable.
Due to these significant results, a 5,000 metre Reverse Circulation (RC) drilling program has been "fast tracked" in order to complete resource and reserve delineation on the North & South Zone. The drilling rig has been mobilised and is expected to complete the program by the end of March 2007 as follows:
a) ~2,800 metres RC drilling on the North Zone to further define mineralisation at depth to the east (70-100m) and to define grade variability in the hardcap zone, thus providing information for production scheduling and possibly bulk sampling.
b) ~1,800 metres RC drilling on the South Zone with infill drilling to define the hardcap mineralisation and exploration drilling to test extensions to the southwest based on interpretation of the gravity survey.
c) ~400 metres of RC drilling is planned to test new gravity targets for iron mineralisation (described in ASX announcement 12 January 2007). Subject to success, an additional 5,000m of RC drilling is planned on the gravity targets to define resources.
Final results from Stage 3 RC drilling (remaining 12 holes) are expected during February 2007. These results may be used in a revised resource estimate (April '07) and preliminary mine planning studies. Alternatively, the results will be incorporated with results from Stage 4 RC drilling in a reserve estimate and detailed mine planning studies by an independent consulting group (June '07).
