The share price of Stellar Resources (ASX: SRZ) jumped 33% after the company announced an exploration target of 275-700Mt iron ore at Coolybring in South Australia.
During the afternoon trade, shares in the company increased 33.3%, or 2.1c, to 8.4c.
The Tarcoola Iron Ore Project is located 8km from the town of Tarcoola in central South Australia and within 10 km of the Trans-Australian railway which links the project to the proposed bulk commodity export terminal at Port Bonython.
Coolybring magnetite mineralisation is one of several exploration targets within the Tarcoola Iron Ore Project.
The objective of the H&S report was to identify the size of the exploration target defined by 15 drill holes and ground magnetic and gravity surveys at Coolybring.
Stellar also requested H&S recommend the additional drilling required for estimation of an inferred resource under the JORC code.
H&S identified an exploration target of 275 to 700 million tonnes, with the estimate based on mineralisation with density of 3.5 t/m3, strike length of 1.7km, width of 300 metres and a down dip extent ranging from170 to 375 metres.
The exploration target excludes satellite magnetite mineralisation 35km to the southeast of Coolybring at Hicks Hill.
Stellar’s objective is to identify an inferred resource for Coolybring based on the report’s recommendations for drilling.
The drilling program will be proposed once finance is arranged.
The down dip range reflects possible pit depths in the first instance defined to 250 metres by current drilling and in the second defined to 425 metres by a conceptual mining study completed by MiningOne.
The report concludes that “A relatively modest infill drilling programme is recommended with the aim of generating sufficient data to allow for the estimation of an Inferred Resource.”
Stellar has previously reported that scoping metallurgical testwork conducted by ProMet Engineers on samples from three drill holes has demonstrated that a standard blast furnace grade concentrate can be produced from Coolybring mineralisation.