Red Rock Resources’ (LON:RRR) 5.23 percent owned associate Jupiter Mines Limited (ASX:JMS) has completed the first phase of the drilling programme at the Mt Ida magnetite iron project in Western Australia.
Jupiter drilled 11,898 metres in 46 holes on the Mt Ida Central Area. Every hole intersected magnetite mineralisation.
Red Rock emphasised that the results so far suggest that Mt Ida is a substantial magnetite project.
Assays and Davis Tube Recovery (DTR) test work from the first 29 holes gave average weight recoveries of 43 percent and concentrate grades of up to 71 percent iron.
Red Rock said that contaminant levels in the concentrate are very low.
Jupiter has generated a conceptual mineralisation model of the Central Area. The model shows six magnetite lodes.
The mineralisation is open to the north and south.
The company expects Jupiter to complete a maiden inferred resource statement in January, along with a scoping study.
Subsequent work will then aim to increase the maiden inferred resource, with more drilling planned in 2011 in the southern and northern areas, whilst the Central area will be upgraded into the measured and indicated categories.
As well as its equity stake in Jupiter, Red Rock also has a 1.5 percent gross royalty from any future production at Mt Ida.