Eastern Iron (ASX: EFE) has delivered an initial resource of 9.47 million tonnes at 49.1% iron for its Nowa Nowa Project in Victoria.
The resource, at the lower cut-off of 40% total iron, includes 8.92 million tonnes at 49.2% iron at the Five Mile deposit and 0.55 million tonnes at 48.3% iron at the Seven Mile deposit, where there has been less drilling.
With the potential for near term development and cash flow generation, the Nowa Nowa project is a primary focus for Eastern Iron.
During the coming months Eastern Iron will undertake large diameter core drilling to obtain drill core samples for further metallurgical testwork.
The Seven Mile deposit outcrops at surface and has been the subject of small scale mining in the past.
The mineralisation, although originally magnetite, is now almost completely oxidised to hematite and may represent an opportunity to mine a coarse direct shipping ore lump hematite product early in the life of the operation.
The mineralised body at Five Mile occurs below a variable thickness of younger sands and volcanic rocks and as such is largely unweathered.
Primary mineralisation consists predominantly of magnetite with hematite becoming more common at depth.
The mineralisation is also quite massive and at the 40% iron cut-off there is little internal waste.
Importantly, this should assist mining, and once the overburden is removed waste to ore ratios during mining should be low.
Additional resource potential exists in the surrounding area and in a broad magnetic feature between the Five and Seven Mile deposits.
This potential of the Nowa Nowa project is increased by the availability of necessary power, roads and bulk commodity transport infrastructure in close proximity.