IMX Resources to define maiden iron ore resource at Snaefell prospect

IMX Resources' (ASX: IXR) latest drilling results have confirmed the width, grade and continuity of the target magnetite mineralisation at the Snaefell iron ore prospect.

The company now expects a maiden JORC mineral resource estimate by the end of the September quarter.

The analytical results were from the remaining six reverse circulation (RC) and diamond core holes completed in the first half of the year at the prospect which is located 12 kilometres south west of IMX’s Cairn Hill magnetite-copper-gold mine, and forms part of the 100% IMX-owned Mt Woods Iron Project in South Australia.

Snaefell is interpreted to have a strike length of more than 3 kilometres and a vertical depth extent of at least 250 metres and the mineralisation remains open at depth with at least 10 holes stopped in mineralisation at approximately 230 metres depth.

These final six holes comprised four RC holes (928 metres) completing the initial resource program for the Core Area, and two diamond core holes (310 metres), which were drilled to confirm preliminary metallurgical testwork results.

IMX is targeting an initial exploration target tonnage of 70-100 million tonnes Mt grading 28-35% iron (Fe) over an 800 metres strike length for the initial mineral estimate.

An additional 200-300 Mt target of similar grade is interpreted to exist along strike to the east of the core area, and will be targeted in the second phase of exploration.

Importantly, initial metallurgical testwork has been completed at the prospect and indicates it can produce a potential direct shipping ore (DSO) quality 65.5 –67.2% Fe concentrate at 180 microns, and over 40% of ROM can be separated by dry magnetic separation after crushing.

The prospect provides additional iron ore potential within the Mt Woods tenements and is in close proximity to infrastructure being developed for Cairn Hill.

The immediate upside for Cairn Hill / Mt Woods remains the definition of further resources to support a long term 3-5 million tonnes per annum (mtpa) iron ore operation within 5 years.

Snaefell is subject to a joint venture with OZ Minerals (ASX: OZL) whereby IMX retains 100% of the iron ore rights and OZ Minerals is earning-in on the non-iron ore rights.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18951/imx-resources-to-define-maiden-iron-ore-resource-at-snaefell-prospect-18951.html