Iron Ore Holdings (ASX: IOH) has updated its JORC Compliant Resource at its strategically located Iron Valley Project located within close proximity of existing infrastructure in the Central Pilbara region of Western Australia.
This identified resource is now 240mt @ 58.8%Fe (183Mt @ 58.9% Fe Indicated and 56.7Mt @ 58.3% Fe Inferred). This includes a high grade component of 143.5Mt @ 60.8% Fe.
A total of over 47,000 metres and 400 holes have been drilled at the project to date. Infill drilling continues and a further resource update is expected next quarter.
The total JORC Mineral Resource over all IOH projects has now reached 400Mt with exploration drilling ongoing.
The company now has a Central Pilbara hub that contains 350Mt within 50km radius of existing rail infrastructure.
Matt Rimes, managing director commented “this increase in the company’s JORC resources to 400Mt represents significant success in our exploration programs over the past 2 years.”
“We are still actively exploring other targets and also applying for additional tenements with a continued focus on the Pilbara region,” he added.
Rio Tinto Agreement
A relationship agreement was signed in December, 2009 allowing Rio Tinto a six month exclusivity period to negotiate the possible purchase of all or part of the Iron Valley Resource from IOH.
This is being progressed as the company continues its exploration of the project. There is no assurance that the exclusivity period will result in Rio Tinto making an offer for the Iron Valley deposit. Negotiations are continuing.
IOH said Drilling continues at the Iron Valley Project and assay results are yet to be received and analysed for over 120 holes drilled to date. A further update on the resource will be completed during the next quarter.
Exploration Update
Airborne surveys and project wide geological mapping at Buckland Hills have identified a further two major targets for drilling.
Heritage surveys have been undertaken and approvals are in place to commence drilling at Buckland Hills in June 2010.
The company said drilling will begin at Bungaroo South where an Inferred JORC Resource of 47.9Mt @ 58.05% Fe was announced to the ASX on 2 February following an initial drilling campaign undertaken in late 2009.
Drilling at the two new targets will then be carried out. Buckland Hills is located in the Western Pilbara close to existing infrastructure and is in the immediate vicinity of the Mesa J deposit which is operated by the Robe River Joint Venture.
Additional drilling campaigns will also be undertaken at projects at Koodaideri South and Lamb Creek in the Central Pilbara during the second half of 2010 with the intention of further extending the company’s resource base.