IMX Resources (ASX: IXR) has begun a 5,000 metre diamond core metallurgical drilling campaign at the Snaefell magnetite deposit.
The program is designed to optimise magnetite and hematite recoveries and define the processing and mining parameters required to complete scoping and mine optimisation studies, which are expected to begin before the end of April.
Earlier Davis Tube Recovery tests have produced magnetic concentrates of 65% iron at a coarse grind size of 200µm with very low levels of impurities.
Importantly, the coarse grind size means lower energy input costs in processing the concentrates for sale to end users.
High grade magnetite concentrates are in high demand from Chinese steel mills and attract premium prices due to their low impurity levels and, in this case, suitability as direct feed to sinter plants not requiring pelletisation.
High mass yields have also been produced to a first stage dry magnetic concentrate at coarse crushing sizes.
These results indicate the potential to exploit this resource utilising a smaller than usual processing facility, requiring lower water and power inputs relative to other existing magnetite processing flowsheets.
Proximity to Cairn Hill
The Snaefell magnetite deposit is located 12 kilometres west of the Cairn Hill joint venture, where IMX Resources last week finalised a life of mine contract with Vingo Resources for 50% of all ore produced from the mine.
The deposit, which is part of the Mt Woods Magnetite Project, has an Inferred Resource of 569 million tonnes at 27.1% iron.
IMX is approaching 1 billion tonnes of combined Resources and exploration targets at Mt Woods after identifying an exploration target for the Tomahawk prospect last month.
Tomahawk now has a target of between 150 million tonnes and 230 million tonnes.
This brings the global iron Exploration Target at Mt Woods to a range of 200 million tonnes to 380 million tonnes.