IMX Resources (ASX: IXR) has discovered some massive zones of high grade magnetite in Cairn Hill phase 2 drilling.
Drilling highlights included; 13 metres at 56.9% iron from 28 metres, including 6 metres at 63.4% iron and 4 metres at 62.4% iron.
In a second hole, the wide intersections continued with; 22 metres at 52.9% iron from 23 metres, including 14 metres at 61.3% iron.
The third and final hole from the initial reverse circulation drilling hit; 9 metres at 61.0% iron from 81 metres.
The phase 2 drilling commenced in late 2010 and will cover 7000 metres, with a second reverse circulation rig expected onsite in the next two weeks to speed up the program.
In addition diamond drilling is planned to obtain sufficient representative whole core samples for bulk dry magnetic separation testwork, which forms part of the phase 2 metallurgical program.
IMX Resources said the phase 2 area is a low copper / sulphur magnetite with generally a slightly lower iron grade than the phase 1 area that the company is currently developing.
At the end of 2010, IMX Resources remains extremely well funded with A$34.1 million cash in the bank.