Investors will be watching keenly for news from Western Desert Resources (ASX: WDR) as drilling has kicked off at the Roper Bar Iron Ore Project in the Northern Territory.
Investors may recall the project is a joint venture with ITOCHU subsidiary, IMEA Exploration and Development of Australia Pty Ltd (IEDA).
Itochu liked the potential of the project, it agreed to farm-in to the project and for IEDA to spend up to A$15.0 million over the next six years to earn up to a maximum 51% equity in the project, in addition to the initial A$2.0 million acquisition.
As an important cue for investors, the reverse circulation drilling program of up to 16,000 metres has been fast tracked with Itochu (IEDA) electing to proceed with the next phase of the farmin, months before a formal decision was due.
Drilling will be devoted to previously mapped high grade outcropping targets with the objective of evolving an initial resource estimate within coming months.
These high grade drill targets are in Area D, Area E, and Area F and were identified from a recently completed geological mapping program conducted during March 2009 extending the known area of outcropping iron mineralisation to 55km², some of which yielded surface samples assaying over 60% Fe.
Managing Director of Western Desert, Mr Norm Gardner, said he was delighted that Itochu continues to demonstrate its confidence in the Roper Bar project and "we look forward to a successful drilling program in this exciting emerging iron ore project.”
The Roper Bar project is only 30 kilometres west of the Gulf of Carpentaria and just 240 kilometres east of the Alice Springs to Darwin rail corridor.
Phase 1 Drilling program completed in 2008 recorded assay results of up to 60% Fe and an average thickness of 5.7m under light cover. Also recent beneficiation test work successfully upgraded lower grade material to in excess of 60% Fe using a low cost gravity separation technique supporting the business model of the Roper Bar Iron Ore Project.
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