The 67mln tonne resource has an iron grade of 31.4% and is defined within an optimised whittle pit shell. Additionally, Red Rock says initial metallurgical testing yielded a high grade concentrate averaging 70% iron.
Red Rock’s work has also identified twelve exploration targets potentially hosting between 158 to 474mln tonnes, with estimated grades of 27 to 47%.
"It is a remarkable achievement to have gone into this virgin area and developed a resource in two field seasons, and simultaneously sample, map and test the area, besides establishing a substantial camp and facilities,” said chairman Andrew Bell.
“Inevitably there is much we have still to do, in particular to access and test our best haematite target and to find further haematite targets, since our geophysical magnetic data is no help in this.”
A majority stake in the Melville Bugt project is currently in the process of being sold to an industry partner.
The deal, which was agreed last month, will see Red Rock’s stake in the project reduce to between 14% and 29%, and it will be due a payment of $10.7mln to $16.1mln. The amount of project equity the company actually sells will depend on the level of acceptances among the other venture partners.