Padbury Mining (ASX: PDY) and joint venture partner Aurium Resources (ASX: AGU) are poised to commence a $5.5 million drilling program targeting a resource upgrade at Peak Hill Iron Project.
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.
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.
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 commnce. 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/18375/padbury-mining-readies-for-a55m-drilling-program-at-peak-hill-iron-jv-project-18375.html
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