Talga Resources (ASX: TLG) has delivered a maiden JORC Resource of 124 million tonnes at 33% iron magnetite across the Vittangi project iron deposits in northern Sweden, which doubles the company's resources within the country.
The Vittangi high grade sections have the potential for toll treatment, and therefore could help the company achieve early cash flows.
The maiden resource builds on the resource at the company's Masugnsbyn magnetite iron project, which located 50 kilometres southeast of Vittangi.
Importantly the new Vittangi resources are higher grade than Masugnsbyn, and are 40 kilometres closer to rail infrastructure.
Highlighting the prospectivity of the area, the Vittangi iron project falls within the Kiruna mineral district which includes the Kiruna underground iron mine with annual production capacity of over 26 million tonnes of ore.
Vittangi is located just 45 kilometres east of Kiruna, the world’s largest, most modern
underground iron mine.
Iron deposits in the district typically utilise 25-45% iron magnetite ore which is then milled and concentrated to 68-70% iron for domestic steel mills or export markets.
Vittangi is wholly-owned by Talga, and has the potential to be extended along strike and at depth, with an additional exploration target of 50-83 million tonnes at 30 - 34% iron defined at Vittangi.
Toll treatment; potential project sale
Talga is now reviewing Vittangi’s high grade sections for any ore suitable for transport to a toll treatment facility. The Vathanvaara drillhole Vath_71_202 returned: 64 metres at 50.1% iron, including 5 metres at 71.6% iron.
The company is also maintaining ongoing negotiations to attract partner to develop or buy both iron ore projects.
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