IMX Resources (ASX: IXR) has completed resource and metallurgical drilling at the Snaefell iron ore prospect with latest results continuing to confirm the width, grade and continuity of the target magnetite mineralisation.
The mineralisation remains open at depth with at least 6 holes stopped in mineralisation at 230 metres downhole depth. The results also substantiate the exploration target tonnage model used to plan the drilling.
Results include 92 metres at 29.27% iron (Fe) from 48 metres and 2 metres at 26.82% Fe from 160 metres.
At Snaefell, IMX is targeting an exploration target tonnage model of 70-100 million tonnes (Mt) grading 28-35% Fe over an 800m strike length.
Importantly, initial metallurgical testwork has been completed at the prospect and indicates it can produce a potential direct shipping ore (DSO) quality 65.5 –67.2% Fe concentrate at 180 microns, and over 40% of ROM can be separated by dry magnetic separation after crushing.
The prospect provides additional iron ore potential within the Mt Woods tenements and is in close proximity to infrastructure being developed for Cairn Hill.
The 20-hole, 4,470m reverse circulation (RC) resource drilling program was designed to define a JORC mineral resource. In early April 2011 IMX completed the final four holes (928m) and analytical results are expected in early May 2011.
In addition, a two hole 310 metres PQ diamond drilling program was also completed in April. The objective was to obtain samples for metallurgical testwork that will advance the preliminary metallurgical test results as the first phase of a planned pre-feasibility study, the company said.
Once all laboratory results have been received a JORC mineral resource will be prepared.
The prospect is interpreted to have a strike length of more than 3km and a vertical depth extent of at least 250m. An additional 200-300 Mt target of similar grade is interpreted to exist along strike to the east of the core area.
Snaefell is located 12km south west of IMX’s Cairn Hill magnetite-copper-gold mine, within the Kangaroo Dam exploration licence EL4649, and forms part of the 100% IMX-owned Mt Woods Iron Project in South Australia.
The immediate upside for Cairn Hill / Mt Woods remains the definition of further resources to support a long term 3-5 million tonnes per annum (mtpa) iron ore operation within 5 years.
The licence is subject to a JV with OZ Minerals (ASX: OZL) whereby IMX retains 100% of the iron ore rights and OZ Minerals is earning-in on the non-iron ore rights.