Magnetite Mines (ASX:MGT) Ltd has delivered 1.55 billion tonnes at 18.7% iron and 15.2% mass recovery in its initial mineral resource estimate (MRE) for the Muster Dam Iron Ore Project in South Australia.
Notably, this inferred resource increases the company’s global MRE to 5.74 billion tonnes at 19.4% iron, making it the largest mineral resource in the Braemar Iron Formation.
The Muster Dam Project shares potential synergies with MGT’s flagship Razorback Iron Ore Project in both physical and chemical characteristics.
Looking ahead, Muster Dam Iron Ore Project represents a natural expansion option beyond the prioritised Razorback Iron Ore Project development.
MRE summary
The MRE applies only to the Muster Dam prospect within the EL6746 tenement.
This inferred resource estimate adds significant tonnage to the company’s global mineral resource estimate for iron mineralisation and there is strong potential for further resources.
Muster Dam MRE.
Forward plan
Outside of the Muster Dam deposit, significant prospectivity has been demonstrated at the Peaked Hill, Duffields and Surrender Dam prospects by previous exploratory drilling and geophysical surveys. Exploration at these prospects remains a priority as the company seeks to expand its portfolio of iron prospects.
The company intends to continue to prioritise the development of the Razorback Iron Ore Project while evaluating Muster Dam, which has the potential to offer a logical and natural expansion pathway beyond the development of Razorback.
About Muster Dam
The Muster Dam Iron Ore Project is in the Northeast Pastoral District of South Australia, about 90 kilometres southwest of Broken Hill.
Historically a multi-commodity tenement targeting Broken Hill-style mineralisation, the Muster Dam area was explored for iron prospectivity in 2011 by the previous tenement holder.
At that time, a significant drill program was completed, consisting of 61 drill holes into the Muster Dam and surrounding iron prospects to produce an historical MRE to JORC 2004 standards and guidelines.