www.stellarresources.com.au
Stellar Resources (ASX: SRZ) holds two priority advanced resource projects - a major magnetite project located in South Australia and a high grade tin deposit in Tasmania - as well as a number of exploration properties targeting copper, gold, uranium and nickel.
The company's aim is to develop a minimum 5 million tonne per annum magnetite operation based on the completion of a successful feasibility study at Tarcoola iron ore project in central South Australia.
Stellar Resources' assays confirm high grade iron concentrate from Hicks Hill
Stellar Resources (ASX: SRZ) has received highly encouraging assay results from Hicks Hill that have confirmed the capability for the near-surface magnetite body at Hicks Hill to produce a high grade premium concentrate and add value to the Tarcoola Iron Ore Project.
The results have also demonstrated that Hicks Hill has the hallmarks of a quality magnetite deposit. Assay results and Davis Tube Recovery tests show concentrate grade of 69% iron and 3.8% silica with no deleterious impurities represents a quality product capable of yielding a premium over standard grade magnetite concentrate.
The high level of consistency in concentrate assays is a positive for the project and implies that the mineralization is relatively homogeneous.
The results demonstrated an average iron head grade of 28% and mass recovery of 33% produces an overall iron recovery rate averaging 80%. This is toward the high end of the range for magnetite mineralisation.
Importantly, the concentrate grade shows a high level of consistency implying little variation in the style of mineralisation.
"Optimisation of the relationship between grind size and concentrate grade could further enhance this outstanding first pass result," Peter Blight, chief executive officer of Stellar said today.
The company said the next step is to negotiate access with the native title claimants along strike to the west of the drill section. Further access will allow drilling to extend the known mineralisation.
Initial drilling is aimed at determining the cross-section and test the quality of magnetite mineralisation at Hicks Hill, has provided very encouraging results and identified a magnetite body that is at least 175m wide and lies within 30m of surface at the northern end of the profile.
He added that optimisation of the relationship between grind size and concentrate grade could further enhance this "outstanding" first pass result.
Stellar said it is significant that RC02 provided the most extensive test across the magnetite stratigraphy. It also recorded high grade at 29% iron and high mass recovery of 40% over the upper 90m of the 136m intersection. RC04, located 140m south of RC02 recorded similar results albeit over a narrower portion of the stratigraphy.
In RC06, variations in mass recovery reflect zones within which the form of iron mineralisation changes with the proportion of hematite increasing relative to magnetite. Importantly, this variation is relatively minor and occurred within approximately 10% of the overall sample.
The company said the quality of the Hicks Hill concentrate has encouraged Stellar to seek permission for more extensive access from the native title claimants to explore the magnetite mineralisation along strike to the west of the current drilling profile. When access is achieved, a drilling program will be scoped.
Previously Stellar said if Hicks Hill could be brought into the Coolybring project, "it has the potential to improve cash flow and extend estimated mine life, producing a positive impact on its net present value."
Coolybring magnetite mineralisation is one of several exploration targets within the Tarcoola Iron Ore Project.
The Tarcoola Iron Ore Project is located 8km from the town of Tarcoola in central South Australia and within 10 km of the Trans-Australian railway which links the project to the proposed bulk commodity export terminal at Port Bonython.
