Padbury Mining to commence drilling targeting DSO at Telecom Hill

Padbury Mining (ASX: PDY) and joint venture partner Aurium Resources (ASX:AGU) have executed a drilling contract with Arrinooka Drilling for 12,500 metres of reverse circulation drilling at Telecom Hill, within the Peak Hill Iron Project.

Mobilisation will start over this weekend with drilling expected to commence next Tuesday. This drilling program is the first aimed at the JV’s DSO exploration target of 10-55 million tonnes at 55-58% iron.

Gary Stokes, Padbury's managing director, said “we are very enthusiastic about this program as we will be attempting to establish a Direct Shipping Ore (DSO) source at the Peak Hill project.”

Once the drilling has commenced the JV Partners will provide fortnightly updates on progress.

Padbury is targeting early cash flows, while also aiming for a resource upgrade. The potential for an upgrade remains very high, considering that the 850 million tonnes at 27.3% iron Inferred JORC Resource is defined from just 4 kilometres of a 10 kilometre strike length.

The Peak Hill Iron Joint Venture is a prospective magnetite and hematite iron ore project located in the Mid-West region of Western Australia at Robison Range, about 450 kilometres north east of Geraldton.

Padbury Mining (ASX: PDY) holds a 70% stake, with joint venture partner Aurium Resources (ASX: AGU) 30%.

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.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19890/padbury-mining-to-commence-drilling-targeting-dso-at-telecom-hill-19890.html