BCI Minerals Ltd (ASX:BCI) has established a maiden mineral resource of 78.3 million tonnes at 59.1% iron for its Kumina exploration tenements in Western Australia.
The tenements were acquired in September and host numerous channel iron deposit targets, higher grade bedded iron deposit targets and associated detrital iron deposit mineralisation.
Deposits proving up within nine months of acquisition
The inferred mineral resource estimate for Kumina, which is around 100 kilometres south of Karratha, is 78.3 million tonnes at 59.1% iron at a 57% iron cut-off.
At a 53% iron cut-off the resource is 115.2 million tonnes at 58% iron.
BCI managing director Alwyn Vorster said developing the deposits to resource status in nine months was a positive result, particularly as they came with zero exploration information when acquired.
“The Kumina resource quality is equal or better than many ore sources from the central Pilbara area,” he said.
Average quality specifications of the resource are 59.1% iron, 2.9% aluminium oxide, 4.9% silicon dioxide, 0.10% phosphorus and 7.1% loss on ignition.
The resource estimates were prepared by SRK Consulting.
Substantial exploration upside
BCI plans detailed geophysical and structural work in coming months, with the aim of increasing the overall understanding of the tenements, firming up existing drill targets and identifying new areas of interest.
“We now have a very promising group of deposits, including a significant tonnage of bedded iron mineralisation with a grade of greater than 59% iron and relatively low impurities, providing a credible ore source in the current iron ore market,” Vorster said.
“Kumina also has substantial exploration upside, with many prospective targets remaining untested, and we see it as an attractive standalone development.”