Mindax drilling unveils more direct shipping material at Mt Forrest Iron Project

Mindax (ASX: MDX) has uncovered additional direct shipping goethite-hematite and related iron mineralisation from drilling at the Mt Forrest Iron Project in Western Australia.

Significant mineralisation including new regolith material has been revealed over two kilometres and one kilometre sections of strike, that was previously undrilled due to areas being inaccessible.

These results will provide a boost to Mindax as the company is focussed on initiating mining at Mt Forrest with a modest DSO operation.

The mineralisation will add to the Indicated beneficiable magnetite JORC Resource at Mt Forrest of 248.2 million tonnes at 32.6% iron (cut off 25% iron) announced  on November 22.

The resource represented a 200% increase which adds considerable value to the project in terms of generating an ore reserve.

The regolith drilling program has now completed 67 holes for 3,269 metres. Scout drilling of a blanket of detrital material adjacent to goethitic iron formation at Cassowary returned consistent iron mineralised intervals of 40-45% iron over a 20 metre section from surface.

This target was generated from earlier gold exploration drilling. Mapping indicates the detrital blanket to abut outcropping goethitic iron formations to the east and laterally extensive for 2 kilometres along the ridgeline and up to 1 kilometre to the west.

Early observations suggest that simple screening or trommelling should generate a suitable product. This regolith mapping is being extended to similar detrital blankets at the Toucan, Parrot and Emu North prospects and drilling will also extend to these areas.

Mapping has outlined an area of 2 x 1 kilometres along the ridgeline and out to the west, and its potential will be quantified by drilling.

Preliminary metallurgical testwork on surface detrital material has upgraded above 57% iron by a simple crushing, screening and washing process.

A new zone of goethite-hematite mineralisation has been identified by scout drilling and mapping at Paradise Bore. This zone includes iron grades greater than 54% iron over 1000 metres of strike and extends to depths of 70 metres below surface.

Recent Davis Tube Recovery (DTR) testwork returned a best weight recovery of 62.3% with a concentrate grade of 71.1% iron, indicative of an ultra clean magnetite specification.

Analysis of DTR tails has confirmed certain mineralisation includes a hematite component potentially enhancing overall iron recoveries.

Further resource definition drilling of these new Regolith targets has the ability to significantly increase the current JORC Resource inventory.

The company is making solid progress on approvals, infrastructure planning and negotiations with infrastructure providers with the aim to mine DSO in 2013 and magnetite in 2015.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22850/mindax-drilling-unveils-more-direct-shipping-material-at-mt-forrest-iron-project-22850.html