Fast emerging Pilbara iron ore developer Iron Ore Holdings (ASX: IOH) can do no wrong at present.
Fresh from a deal with Rio Tinto (ASX: RIO) for a mine gate sale covering future iron ore production of up to 1.5Mtpa from IOH's Phil’s Creek Project, the company has inked a significant increase in the Mineral Resource for its 100%-owned Iron Valley Project in the Pilbara Region of Western Australia.
The new JORC Indicated and Inferred mineral resource is 132.3 Million Tonnes @ 58.9% Fe 4.3% SiO2, 3.0% Al2O3, 0.19% P and 7.4% LOI. This is a 50% increase from March 2009. It also includes a high grade Direct Shipping Ore (DSO) component of 85.9 million tonnes at 60.75 Fe.
Just how large both of IOH's iron ore resources are in the Pilbara is the question that is pondered by investors and analysts right now?
Importantly, the export quality of the ore delineated is manna from heaven for IOH holders - and a major reason for the one mine-gate deal to date with Rio Tinto.
IOH believes initial scoping studies point to a resource that will support a 5-10 Million tonne per year mine development with the potential to be a low-cost, low strip ratio operation.
IOH is aiming for production of up to 1.5Mtpa to commence in 2010 at Phil’s Creek Project.
The 100% owned Iron Valley DSO Deposit is located 10km north east of Rio Tinto’s Yandicoogina Operation in the East Pilbara Region of Western Australia.
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