Montezuma Mining shares rise on maiden iron resource at Mt Padbury

Montezuma Mining (ASX: MZM) has reported that Sinosteel Midwest Corporation have defined a Maiden JORC compliant Inferred Mineral Resource Estimate for the Jabiru Prospect at the Mt Padbury Project, Western Australia, of 13.3 Mt of iron mineralisation grading 56% Fe.

The key significance of this milestone is that the Mineral Resource Estimate exceeds the threshold required to trigger a third cash payment of A$4 million to Montezuma.

Under the terms of the sale agreement, the payment is due on or before 30 April 2010.

On commencement of production from the project, Montezuma will also receive a 0.5% royalty on the gross proceeds of the sale of all iron ore grading between 30-50% Fe and a 1% royalty on the gross proceeds of the sale of all iron ore grading over 50%.

The additional funding will further underpin aggressive exploration at the company’s Projects.

The company said target generation activities have identified a number of high priority targets at all projects and an extensive campaign of RAB and RC drilling is planned targeting gold, high-grade DSO manganese ore and copper massive sulphide mineralisation.

Montezuma Mining shares rose 13% to 26 cents in trading this morning.

http://www.proactiveinvestors.com.au/companies/news/6254/montezuma-mining-shares-rise-on-maiden-iron-resource-at-mt-padbury-6254.html