IMX Resources (ASX: IXR TSX: IXR, IXR.WT) has made a significant find at its Mt Woods Magnetite Project in South Australia, uncovering new iron rich magnetite formations at the Axehead and Tomahawk North prospects.
This has further highlighted the exploration upside of the project and prompted an upwards revision of the project’s exploration target to between 1.5 and 1.8 billion tonnes at 25 to 32%.
The exploration target includes the existing Inferred Resource of 569 million tonnes at 27.1% iron at the Snaefell deposit.
Six prospects were drilled and this, combined with a review of regional magnetics data and historical exploration drilling, has resulted in an exploration target tonnage increase of between 168 and 214 million tonnes.
Neil Meadows, managing director, commented: “These latest results have boosted our global exploration target for Mt Woods beyond one billion tonnes and confirms that the Mt Woods Project has significant resource upside, as we have only scratched the surface from an exploration perspective.
“IMX believes this project has excellent development potential, with the ability to produce high grade, very coarse-grained magnetite concentrates that are in strong demand globally and are attracting premium prices from steel producers.
“IMX is working hard to find a development partner to realise this potential for shareholders.”
Twenty five reverse circulation holes, totalling 3,486 metres, were drilled during October and November 2012, with all holes returning significant magnetite iron intersections from five prospects near the Tomahawk prospect.
Tomahawk is located 25 kilometres southeast of IMX’s Cairn Hill mine in Coober Pedy, and Fitzgerald Dam which is located west of Cairn Hill.
The most notable intercepts from this program included:
- 114 metres at 32.1% iron from 74 metres at Axehead;
- 96 metres at 32.4% iron from 40 metres at Tomahawk North;
- 53 metres at 30.7% iron from 33 metres at Eagle;
- 125 metres at 33% iron from 60 metres at Penrhyn;
- 80 metres at 32.5 % iron from 22 metres at Arapiles; and
- 53 metres at 34.1% iron from 66 metres at Fitzgerald Dam.
The magnetite-quartz formations were found to have relatively consistent iron grades across their full width, with the formations also displaying minimal weathering of the magnetite mineralisation.
The iron formations continue at depth, beyond all existing drilling and like the Tomahawk magnetite deposit, the magnetite at Axehead and Tomahawk North is coarse-grained.
The exploration target for the prospects drilled between October and November 2012, plus Tomahawk, is 330 to 400 million tonnes at 25 to 32% iron.
Other regional prospects have a total exploration target of 600 to 800 million tonnes at 20 to 30% iron.
IMX’s reverse circulation drilling at the Tomahawk group of prospects has shown higher average iron grades, minimal oxidation of magnetite and shallower overburden compared to the Snaefell deposit.
The company now plans to complete a program of Davis Tube Recovery analysis to indicate the iron content of magnetically separated concentrates generated from these samples.
An increase in the exploration target for Mt Woods of between 168 and 214 million tonnes indicates the substantial exploration potential still evident at the project.
Drilling on the Tomahawk group of prospects has demonstrated higher average iron grades, minimal oxidation of magnetite and shallower overburden compared to the Snaefell deposit.
These smaller, potentially higher yielding targets could represent opportunities in terms of resources to exploit on a smaller scale start-up project.
Mt Woods development potential is high with its capability of producing high grade, coarse-grained magnetite concentrates, which can fetch premium prices on the global steel market.
The new discoveries are value accretive for IMX Resources and likely to drive market valuation higher.
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