Analytical results from the initial 6 reverse circulation drill holes by IMX Resources (ASX: IXR) have confirmed the width, grade and continuity of the target magnetite mineralisation at its wholly owned Snaefell iron ore prospect.
The resource drilling intersected wide intervals of 72 to 103 metres of magnetite mineralisation averaging between 27 and 33% Fe in holes SFRC004 to SFRC009.
The mineralisation remains open at depth with holes SFRC005, SRFC006 and SFRC009 ending in mineralisation at 230m downhole depth.
The results confirm the exploration target tonnage mineralisation model used to plan the drilling.
Detailed metallurgical testwork indicates that up to 40% of the mass of the ROM ore could be rejected after crushing by dry magnetic separation.
IMX is encouraged by these results as it would significantly reduce the size of any grinding circuit required. Wet LIMS magnetic separation at a P80 of 150 microns could produce a 66% Fe magnetite concentrate.
The Snaefell iron ore prospect is located approximately 12km southwest of the IMX Cairn Hill magnetite-copper-gold mine, and forms part of the IMX Mt Woods Fe Project in South Australia.
The licence is subject to a joint venture with OZ Minerals (ASX: OZL) whereby IMX retains 100% of the iron ore rights and OZ Minerals is earning the noniron ore rights.
A 17 hole, 5,000m RC resource drilling program commenced at the Snaefell in October and 16 holes for a total of 3,542m have been drilled. The balance of the program is expected to be completed in Q1 2011.
The Snaefell iron prospect is interpreted to have a strike length of more than 3km and a vertical depth extent of at least 250m.
An exploration target tonnage of 70-100 million tonnes grading 28-35% Fe was estimated over an 800m strike length in 2009.
The RC program is designed to define a JORC mineral resource at the Snaefell “Core Area”.
An additional 200-300Mt target of similar grade is interpreted to exist along strike of the core area but is not currently being tested.
The Snaefell magnetite appears to be relatively coarse grained which has the potential for a lower capital and operating cost project, similar to IMX's Cairn Hill project.
A JORC mineral resource will be prepared once the resource RC drilling has been completed and all laboratory results received.
A diamond drilling metallurgical program is planned for the first quarter of 2011 to confirm the preliminary metallurgical test results as the first phase of a planned pre-feasibility study.