Iron ore developer, Western Desert Resources (ASX: WDR) made headway during the quarter at its Roper Bar Project in the Northern Territory. The project is 80% owned by WDR and Itochu subsidiary IMEA Exploration and Development of Australia Pty Ltd can earn up to 51%.
Initial metallurgical test results were received. Metallurgical testwork commenced during the period and is ongoing. Results have been received from AMMTECH on ore quality testing of core samples from potential DSO iron ore at Area F (East).
The results showed the following:
- Unconfined Compressive Strength (UCS) range 14.5 – 45.6MPa. Rock failure was predominantly by shear and the results indicate that the rock is weak to medium strong and should break up with relative ease when subjected to blasting.
- Lump/Fines Ratio – 67:33. Assay results of the lump and fines fractions showed that their chemistry was similar. This was a good result which indicates that the material will produce and maintain a high level of lump during mining and transport.
- Lump Decrepitation and Reducibility tests. This result indicates that the material has a relatively low rate of chemical reduction consistent with the competent and decrepitation resistant nature of the lump ore.
Some research has been carried out on the potential marketability of any potential DSO iron ore produced from the project. The material is a hard competent lumpy ore which has similar characteristics to South African iron ore.
Importantly, the very low alkali and phosphorus levels together with moderate alumina content will make it a very good match to inland China steel mills, the company said.
Beneficiation testwork is being carried out by NAGROM in Perth. The aim of the work is to determine a cost effect method of separating hematite from the gangue minerals (quartz and siderite) in lower grade ores.
Core samples of iron ore from Area D are currently being tested and samples from Area E (East) have also been submitted to the laboratory. Final results should be available in the June quarter.
Interpretations of the geophysical surveys completed in 2009 are being carried out. A detailed gravity survey was completed over Area F (East).
A strong gravity response was measured over the ironstone due to its sub vertical orientation and the high density of the ore zone (see below).
WDR plans to extend the gravity survey over Area F (West) where the ore zone appears to be poddy and disrupted. The gravity survey should be able to define zones of higher grade material which could be tested by further drilling.
Airborne magnetic/radiometric surveys were carried out over Areas A, B, C, E and F. The Sherwin Ironstone Member produces a weak response in the magnetics which can be used to map the unit. The response is more pronounced in the north of the project area where the ironstones are steeply dipping and of higher grade.
In June, metallurgical testwork will continue with final results of the beneficiation studies expected during the quarter. Field activities should commence in June following the late end to the northern wet season. Drilling is expected to commence with two RC percussion rigs during the quarter.
Mountain Creek Project (100% WDR owned)
No field work has been carried out in area due to the northern wet season. Office studies have been carried out with the aim of defining drill targets for the 2010 field season. Interpretation of the gravity and airborne magnetic surveys has assisted with the drill targeting.
ROVER (WDR earning up to 80%) – Gold and base metals
The Rover project is a joint venture with TNG Ltd over two granted exploration licences (EL24471 and 25581) located south of Tennant Creek in the Northern Territory.
WDR has earned 51% in the roject and has taken up the option to earn a further 80%. A drilling programme consisting of seven RC percussion holes was carried out in February 2010. nclement weather led to the work being terminated early. It is planned to complete these holes with a diamond drill rig.
Final assay results have been received for the RC percussion holes. The basement Proterozoic rocks are not anomalously enriched in gold and base metals in the three holes completed to planned depth. There are some zones of phosphatic sediments at the base of the Wiso Formation in two of the holes. Further sampling of these zones is required.
The area remains highly prospective given its proximity to the high grade Rover 1 discovery of estgold Resources, which is located 700m west of the tenement boundary.
At the end of the quarter cash reserves stood at $9.6 million.