Eastern Iron (ASX: EFE) has engaged project delivery specialists Engenium to carry out the Definitive Feasibility Study for its Nowa Nowa Iron Project in eastern Victoria.
The company has started initial technical studies including:
- Resource definition diamond and RC drilling at Five Mile and Seven Mile deposits;
- Metallurgical optimisation studies;
- Marketing studies; and
- Environmental baseline investigations.
Consultants have also been appointed to assist with the permitting and environmental approvals process.
The DFS is scheduled for completion by the end of 2013.
Engenium will project manage the entire study including inputs from specialist sub-consultants in mining, geotechnical investigations, port and transport studies and other areas.
The DFS will be committed to in stages as the Board is informed by the progress of related technical studies. This program of technical investigations is designed to more accurately define the final project parameters that will be used in the DFS modeling.
Drill core from the recently completed diamond drilling program at the Five Mile deposit will be used for scaled up process testwork including crushing and grinding indices.
Assays for this program, which was designed to provide more certainty to the resource model as well as investigating areas of the resource not yet closed off by drilling, are expected soon.
All holes drilled within the projected outline of the orebody intersected substantial thicknesses of massive magnetite mineralisation.
A further program of reverse circulation drilling has also commenced to investigate possible extensions to the current resource as well as filling in areas of the resource which are inferred but fall within the designed pit outline.
Further reverse circulation drilling will be carried out at the 7 Mile deposit to improve understanding and definition of resource.
Eastern Iron is investigating the option of mining 7 Mile first, as it requires no pre-strip and could provide cash flow during development of the larger 5 Mile deposit.
Testwork will also be carried out over the next few months to determine methods to recover iron lost to the non-magnetic tail during the wet LIMS testwork in January.
Recent mineralogical studies have confirmed these losses have occurred as hematite either as grains, aggregates or in aggregates with lesser magnetite.
This material comprised some 45% by weight of the non-magnetic tail and provides a significant opportunity for improving recovery of iron to product.
Eastern Iron had $2.57 million in cash as of 31 December 2012, or $0.022 per share. This compares with its share price of $0.06 and market capitalisation of $6.88 million.
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