Iron Road (ASX: IRD) will increase its position in the Gawler Iron Project where the potential for development of several hematite and coarse-grained magnetite deposits via relatively simple beneficiation has already been identified.
Iron Road secured 90% of the iron rights of Kingsgate Consolidated Ltd (Dominion Gold Operations Pty Ltd) tenements at Gawler with final cash payment of $1.15 million.
Highlighting the potential of the project to move towards development, average iron content of magnetite concentrates from test work is in the range 69% to 70% iron with 1.1-2.0% SiO2, 0.6-1.4% Al2O3 and 0.00% P at a P100 of -75μm.
Currently the stage two diamond drilling program is testing five known iron ore prospects and one new target. The program comprises 26 diamond drill holes for 3,000 metres with holes up to 200 metres deep.
Another major plus is the strategic location, with deposits geographically well-located and tenement package abuts the standard gauge Trans-Australian Railway.
Iron Road has already outlined plans to build a large scale iron business in South Australia, where there is already increasing activity in the area from some major iron ore players such as Fortescue Metals Group (ASX: FMG).
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.