Perth, Dec 6, 2007 (ABN Newswire) - Midwest Corporation Limited has announced an $11 million accelerated drilling program for the Weld Range Direct Shipping Iron Ore Project which will include substantial initial drilling within tenements contained in Hampton Hill Mining's (ASX: HHM) Joint Venture with Midwest (Hampton JV tenements).
The drilling within the Hampton JV tenements will involve 4,700 metres to provide the first testing of the eastern lenses W6 and W20 and this is expected to occur between April and June of next year. The program will also include a further 2,600 metres of drill testing of the western lenses W17 and W19 to be carried out between May and August next year.
Under the terms of the Hampton JV, Midwest is required to bring the testing of the iron ore potential of the Hampton JV tenements up to the required standard for the completion of pre-feasibility studies related to these tenements by February 2011.
Hampton plans to initiate a full appraisal of the iron ore resources on the Hampton JV tenements early in the new year and appraise the on-going drill testing under the management of Midwest. The joint venture agreement provides for the sale of Hampton's interest in these tenements to Midwest at a price as determined by an independent arbitrator or, at Hampton's election, the exchange of its interest for a 2% FOB royalty. The determination of the sale price and the sale or royalty election will not be triggered until the prefeasibility study is completed.
Midwest aims to have a prefeasibility study incorporating all the tenements of the Weld Range Direct Shipping Iron Ore Project completed by September next year.
){kind=link}