Emergent Resources Limited (ASX:EMG) Confirms Major JORC Resource Upgrade To 561Mt From Previous 127Mt At Beyondie Iron Project
Drilled JORC Inferred Resource in E52/1806
The JORC compliant Inferred Mineral Resource totals 561 million tonnes, grading 27.5% Fe with low deleterious impurities of P, S and Al2O3.and was confirmed from the results of the Beyondie Projects three drill programs which total 17,399 metres across 116 holes (110 RC holes for 14,710 metres and 14 Diamond-tailedholes for 2,689 metres). The Inferred Mineral Resource is reported without a Fe cut-off grade, however drilling results are remarkably consistent within the wide BMS units and a nominal 20% Fe was used to define the mineralised zones.
Drilled Exploration Result in E52/1806
An additional Exploration Result was delineated in the drilled area in E52/1806. AMC estimates the Exploration Result tonnage to be 480 to 510 million tonnes grading 27.0 to 28.5% Fe.
Emergent Managing Director Garry Hemming said: "We are delighted to report this major JORC Resource upgrade and also confirm a significant new Exploration Target, at E52/1806, at the Beyondie Project. Our drilling programs to date have focused on this segment of the total project area and we are delighted to achieve our goal of confirming a Resource and Exploration Result of 1 billion tonnes in E52/1806 and a total volume of 4.7 to 5.3 billion tonnes at Beyondie."
Drilling results combined, with the 3.7 to 4.2 billion tonne Exploration Target announced last week, outside of the drilled area at the project, further establishes the large scale, world class potential of the project," he said.
The interpretations that underpin the Exploration Result tonnage and grade ranges are derived from drill hole data that is located on sections along strike from the Inferred Mineral Resource zone. While the drilling in the region of the E52/1806 Exploration Result does demonstrate the continued presence of the BMS units, and the available drillhole assay data does support the presence of the BMS mineralisation, the holes are considered to be too widely spaced between section, and of insufficient length on section to provide sufficient confidence in the geological interpretation to classify the mineralisation as a Mineral Resource.
Exploration Target Outside E52/1806
On 19 November 2009, the Company also announced an exploration target of 3.7 to 4.2 billion tonne outside of the drilled area of the project (E52/1806). It was confirmed as a result of an ongoing field mapping program and geophysical program conducted by Emergent and assessed by AMC Consultants. The volume of magnetite mineralisation is located outside E52/1806 and is based on assumed depths approximating the depths identified in the drilled areas. The AMC supporting methodology confirms volumes for the BMS zones and the tenor of the magnetic response suggests that a similar grade may be present throughout the entire tenements.
The upgraded Mineral Resource, Exploration Result and Exploration Target confirms the large scale, world class potential of the Beyondie Project, and positions the project as one of the most significant new magnetite iron projects in Australia.
The Beyondie exploration licences cover multiple magnetite-bearing banded iron formation (BIF) established over the entire 60 km length of Emergent's leases. The BIF's are being targeted by EMG for large volumes of iron in the form of magnetite.
The informally named Beyondie Magnetite Schist (BMS) forms the main host rock. It comprises 3 siliceous, magnetite-rich horizons (indentified as BMS1, BMS2 and BMS3) and has affinities more akin to the South Australian magnetite occurrences, such as the Warramboo Deposits being developed by Iron Roads Limited. These magnetite-bearing deposits are known for their high grade, relative purity and coarser grain size. Similar to South Australian deposits, the BMS represents a highly deformed (folded and faulted) banded iron formation. It is predominantly composed of three components (in decreasing order of abundance): quartz, magnetite and chlorite. The recrystallised unit lacks the classic alternating banding of silica and magnetite of true BIF's. Instead the rock forms as a black, foliated to sheared, homogenous unit.
An infill drilling programme is planned for execution commencing quarter one, 2010. The drilling objective is to reduce geological uncertainty and increasing the resource classification through establishing a nominal drillhole coverage, 400 x 100 m, over the 12 km strike length, in addition to metallurgical testing including the routine processing of Davis Tube Recovery (DTR) testwork to establish grade and percentage weight recovery of potential magnetite concentrate product.
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About Emergent Resources Limited
Emergent Resources Limited sees the present and foreseeable demand for resource commodities such as iron, base metals and precious metals remaining strong. Emergent’s strategy is to effectively define and develop the company's Beyondie Iron Project exploration in conjuction with existing strong geological and structural association of lead-zinc and copper-gold mineralised targets.
Emergent Resources Limited