Energio wraps up 100% ownership of key iron ore licences in Nigeria

Energio (ASX: EIO) is poised to step up field drilling and sampling activity in September after acquiring 100% control of iron ore licences in Kogi State, Nigeria, following KCMH Australia's acquisition of an additional 5% interest in KCM Nigeria.

KCMH Australia now has a 75% holding in KCM Nigeria, the owner of the iron ore licences, and the acquisition completes the only outstanding minority holding in KCM Nigeria that is not already under option with the company.

Energio is targeting a 1-2 billion tonne iron ore resource grading 30-54% iron on its granted license areas. There is also potential for higher grade DSO mineralisation.

The license areas are positioned within an emerging iron ore provence which is attracting significant investment and are proximal to existing road, rail and port infrastructure with spare capacity.

Initial exploration will focus on the Agbaja Plateau iron ore project. Rock chip assays have returned grades of up to 55% iron. A maiden JORC resource is targeted in early 2012.

Meanwhile, the company's first shipment of sample material from the winzes area of the Agbaja Plateau arrived in Perth on September 1 and will be sent to the ALS Group for assay.

This will serve as a process when the 40,000 plus drilling samples are forwarded to Perth during the drilling program.

This first quantity of material was hand excavated from four selected locations in the area to be drilled and will provide a preliminary insight as to what may be expected when the field drilling and sampling activity starts.

The company expects the results of these assays to be at best a guide to further activity and may result in amendments to the intended drilling programs being made.

The drill rig is in transit and expected to arrive in Nigeria around the 14th September 2011.

Drill hole surveys have been completed in preparation for drilling to commence by early October commensurate with the start of the dry season.

Energio anticipates resource drilling to take about 6 months with report completion requiring a further 2 months.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19333/energio-wraps-up-100-ownership-of-key-iron-ore-licences-in-nigeria-19333.html