Richmond Mining delivers 36% boost in iron JORC Resources at Buena Vista's West Deposit

Richmond Mining (ASX: RHM) has received a major boost at the company's Buena Vista Iron Project, with the latest resource upgrade delivering the potential for a plus ten year mine life at the West Deposit.

Independent consultants re-estimated the iron Indicated JORC Resource 36% higher to 88.7 million tonnes at 20.4% total iron at the West Deposit, which incorporates a 10% total iron wire framing cut-off grade.

The cut-off grade was lowered form 15%, based on favourable metallurgical test work for upgrading of the lower grade sections of the resource into a concentrate form, and also the intention to mine the resource as a bulk mining operation.

Importantly, the revised study allowed an ore envelope category to be incorporated into the medium grade category, with only a relatively minor decrease in the average grade.

This was due to the capture of isolated blocks of medium and high grade material, and the fact that much of the lower grade material grades only marginally below 15% total iron.


Continue studies provide 'excellent potential'

The re-estimation of the ore resources available within the West Deposit is part of continuing studies and refinement to the feasibility study completed in May 2011.

Significantly - the study noted the 'excellent potential' for the extension of the West Deposit resource down dip and, to a lesser extent, to the west of the currently defined pit boundary.

The next stage in the resource studies is to undertake further mining engineering work to reassess the effect of this increase on the overall mining and production.

Buena Vista is located about 40 kilometres from the Union Pacific rail line that connects to port facilities at Sacramento, Stockton, Richmond and San Francisco.

Richmond is targeting commissioning before the end of 2012, with the project already hosting a plus 150 million tonne JORC Resource and over 200 million tonnes in exploration targets.


Other positive news for Richmond

In another boost to Richmond's operations, less than a fortnight ago the company received some recognition for the operations of Buena Vista from the Nevada Governor.

The project has been acknowledged by the Northern Nevada Development Authority as one of a handful of new businesses which Nevada Governor, Brian Sandoval, said should be recognised as a business enterprise that deserves recognition for "sound business practices and valuable economic impact to our local communities.”

Richmond was one of only two new mining operations to be recognised at a recent award ceremony by the Northern Nevada Development Authority for its "commitment to economic development and building a better quality of life in the Sierra Region of Nevada.”

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20410/richmond-mining-delivers-36-boost-in-iron-jorc-resources-at-buena-vistas-west-deposit-20410.html