Radar Iron (ASX:RAD) has intercepted 30-40 metres thick magnetite rich skarn following reverse circulation drilling done as part of its due diligence of the Mt Ruby direct shipping ore deposit in North Queensland.
Radar Iron is in the process of acquiring 51% of the project via farm-in agreement with Developed Iron Ore.
The 11 hole RC drilling was completed for 497 metres and the best intervals received were 28 metres at 47.1% iron and 20 metres at46.9% iron.
Radar is also currently re-negotiating with the vendor for a revised acquisition structure and also to include other nearby prospects using a more standard farm-in structure as the quantity of potentially DSO is less than indicated from surface category.
Since the area is highly prospective for magnetite mineralisation, Radar is keen about the acquisition.
The Mt Ruby project also is close to infrastructure and lies within 120 kilometres trucking distance from the port near Innisfall.
As part of a re-negotiated farm in deal, the two are discussing the inclusion of these projects into a proposed joint venture structure.
Radar is also considering other project acquisition both in Australia and overseas.
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