Technology Metals Australia Ltd (ASX:TMT) is confident it will increase the mineral resource and ore reserve estimates at its Yarrabubba Iron-Vanadium-Titanium project south of Meekatharra in Western Australia, following the latest drill results.
Infill and extensional drilling has confirmed the presence of broad zones of high-grade massive magnetite mineralisation and a number of hanging wall units grading in excess of 20% iron.
Drilling in the southeast of the Yarrabubba mineral resource has identified thickening of the orebody with results including:
- 24 metres grading 50.2% iron, 1.13% vanadium oxide and 12.8% titanium oxide from 176 metres; and
- 26.5 metres grading 46.6% iron, 1.06% vanadium oxide and 12.1% titanium oxide from 21.5 metres
Yarrabubba potential growing
“The drilling at Yarrabubba has highlighted the wide consistent nature of the orebody. We are confident that the drilling will result in an increase in the mineral resource estimate and ore reserve,” Technology Metals managing director Ian Prentice said.
“Most pleasing is the identified potential for thick high-grade zones with scope to be modelled as starter pits that can produce high-grade concentrate at low strip ratios and enhance the project economics.”
Shares have been as much as 14.5% higher intra-day to 47.5 cents, approaching the 12-month high of 48 cents.
Currently, the mineral resource estimate for Yarrabubba stands at 27.7 million tonnes at 38.7% iron and 0.9% vanadium oxide in the indicated and inferred categories, including high-grade massive mineralisation of 14.4 million tonnes at 48.1% iron and 1.1% vanadium oxide.
It also hosts a maiden probable ore reserve of 9.4 million tonnes at 45.3% iron and 0.97% vanadium oxide, consisting of only fresh mineralisation and a large proportion of the high-grade massive magnetite unit.
New resource upcoming
Previously identified thick intersections in two of the Yarrabubba holes have been complemented by intersections of:
- 67 metres grading 36.6% iron, 0.81% vanadium oxide and 9.4% titanium oxide from 69 metres, including 25 metres grading 45.4% iron, 1.04% vanadium oxide and 11.8% titanium oxide from 84 metres; and
- 15 metres grading 49.6% iron, 1.16% vanadium oxide and 13% titanium oxide from 114 metres.
Initial metallurgical test-work indicates that composites from the central and southern end of the deposit produce concentrates that grade up to 64.3% iron and 1.65% vanadium oxide at a grind size of 125 microns.
Overall, the deposit has been drilled out to better than 100 x 50-metre spacing, with these results expected to lead to an increased mineral resource and ore reserve estimate.
Next steps
Geological modelling work is underway ahead of an update of the Yarrabubba mineral resource estimate, with assay results from RC and diamond drilling programs to be incorporated into the resource model.
This update will also include data from a comprehensive program of Davis Tube Recovery test-work throughout the orebody.
The new Yarrabubba estimate will be used to update the open pit mining model to generate a revised open pit reserve and provide a detailed mining schedule.
- Daniel Paproth