Red Rock Resources’ (LON:RRR) shareholding in Jupiter Mines (ASX: JMS) was boosted in value overnight, as the iron mine developer jumped 20% on the Australian Securities Exchange.
The 22.64% owned associate reported it progress on the Mt Ida Magnetite Project, where two rigs are currently turning.
A 400 million tonne, JORC compliant, inferred resource is being targeted by the year’s end. Jupiter has previously announced a conceptual exploration target of 1.1 to 1.3 billion tonnes for magnetite at Mt Ida, with an expected grade of between 30 to 40% iron (fe).
Jupiter has completed around 70% of the 11,000 metre reverse circulation (RC) drill program at the project.
Thirty-one holes of the planned forty-three holes are complete, with the majority submitted to the laboratory for analyses and DTR Testwork.
Davis Tube Recovery (DTR) testwork on the first seven holes revealed "excellent" concentrate weight recoveries of up to 52% and grades of 69% iron.
Structural mapping has also been completed over the Mt Ida Banded Iron Formation (BIF).
Separately Jupiter also updated investors on its acquisition of the Tshipi Kalahari Manganese project in South Africa.
Back in March Jupiter agreed a deal with Pallinghurst Resources (JSE: PGL) to acquire the massive manganese project (163.23m tonnes grading 37.1%), in a A$490m share-based transaction,
Jupiter will issue around 1.1bn new shares to the Pallinghurst co-investors at a price of A$0.2110 per share.
Today the company said the acquisition is expected to close imminently, after the South African Department of Mineral Resources approved the transfer of the Tshipi Bokone prospecting permit.
Red Rock currently has 83.79 million Jupiter shares, representing a 22.64% equity stake. Once the Tshipi deal completes, Red Rock’s equity will be diluted to 5.23%.