Aurium Resources gears up for drilling program targeting resource upgrade at Peak Hill Iron Project

Aurium Resources (ASX: AGU) and joint venture partner Padbury Mining (ASX: PDY) are preparing to commence a A$5.5 million reverse circulation (RC) infill and extension drilling program at the Peak Hill Iron Project, aimed at achieving a resource upgrade.

Drilling at the Telecom Hill deposit will target the magnetite asset and will be the first diamond drilling program to enable detailed metallurgical testing of the ore body. Also, an RC program will target the recently announced hematite find on Telecom Hill.

Peak Hill has potential for upside, with the resource defined from just 4 kilometres of a 10 kilometre strike length, allowing for a significant boost in the resource base.

The program aims to expand and upgrade the existing 850 million tonne (Mt) at 27.3% iron (Fe) Inferred JORC Resource and better define the hematite prospects at the deposit.

A final heritage survey is required and will be undertaken next week so that drilling can commence. The Department of Mines and Petroleum has already approved the program of work.

The company expects line clearing and drilling to kick off upon receiving the appropriate clearances.

Drilling at the Mt Padbury deposit has been delayed by a referral of the program of works to the Department of Environment and Conservation (DEC) for advice as the work involves a new remote site that is part of a banded ironstone formation. The JV partners are progressing through the DEC’s recommendations.

The JV has engaged GHD to undertake baseline flora and fauna studies which are a necessary component of approvals for Aurium’s drill program at the Mt Padbury tenement.

Another key ingredient driving the Peak Hill project forward includes last month's announcement of above 65% iron from Davis Tube Recovery at the main BIF target.

The results indicate a high-quality concentrate can be achieved, and importantly with low impurities, and mass recoveries of about 22%.

Peak Hill has an exploration target of 3.5 to 5 billion tonnes at 25% to 35% iron, and covers a significant 2500 square kilometres.

Aurium holds 70% of Peak hill, with joint venture partner, Padbury Mining (ASX: PDY) 30%.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18373/aurium-resources-gears-up-for-drilling-program-targeting-resource-upgrade-at-peak-hill-iron-project-18373.html