Energio progresses drilling targeting maiden iron ore JORC Resource at Agbaja Plateau

Energio (ASX: EIO) is making solid progress at the Agbaja Iron Ore Exploration Project in Nigeria with a drill now operating around the clock aimed at drilling sixty of seven hundred planned holes to the end of October.

The first consignment of reverse circulation drill hole sample material is being despatched to Perth for laboratory analysis and the appointment of consultants to supervise and sign JORC Resource reporting is being finalised.

On site staff now includes 39 people from the local host communities of Agbaja, demonstrating Energio's commitment to community involvement.

The project has potential to deliver the company a maiden iron ore JORC Resource in the first half of 2012.

A scoping study has identified a 10 million tonne per annum open cut mining operation utilising railway and transhipping from Warri River port. Rock chip assays to date have returned grades of up to 55% iron.

Energio's iron ore leases are proximal to an existing iron ore railway, road and port infrastructure and a 3.3 million tonne per annum Itakpe iron ore beneficiation facility, which is government owned – presently on care and maintenance.

The Agbaja Plateau project can be accessed via road, rail and air from the company’s Nigerian head office in Lagos. A network of sealed bitumen roads exist throughout the target project areas.

The plateau is 140 square kilometres in area and hosts a horizontal sandstone layer some 20 to 30 metres thick which has had embedded in it magnetite mineralisation by sedimentary action.

To test the content and quality of the iron in the mineralised zones of interest, Energio has delineated an area of about 1600 Hectares for drilling using a drill grid spacing of 200 metres by 100 metres.

Significantly, the mineralised zone of interest represents only 10% of the entire Agbaja Iron Ore Exploration Project’s land area.

A number of reverse circulation holes will be extended to about 200 metres deep to determine whether deeper ore bodies are present on the Agbaja Iron Ore Exploration Project.

In addition, some drill core will be taken to enable metallurgical testing to be carried out for mineral processing considerations.

The drilling program is scheduled to last about four months and the company expects to receive further drilling results toward the end of November which will be followed by regular updates through to the end of the program.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21599/energio-progresses-drilling-targeting-maiden-iron-ore-jorc-resource-at-agbaja-plateau-21599.html