Padbury Mining to provide iron ore samples to interested investors in China

Padbury Mining (ASX: PDY) is looking to unlock the potential of the Telecom Hill prospect by making the proactive step of dispatching a sample from the latest drilling program to interested investors in China.

A twelve hole drilling program has recently been wrapped up at Telecom Hill, which is hosted within the Peak Hill Iron Project joint venture in the mid-west region of Western Australia.

Adding some spice to the project, it has an exploration target of 3.5 to 5 billion tonnes at 25% to 35% iron covering an extensive 2500 square kilometres, and is prospective for magnetite and hematite iron ore.

Adding some more potential is that Telecom Hill has a DSO exploration target of 10 to 55 million tonnes at 55% to 58% iron.

The current Inferred JORC Resource is 850 million tonnes at 27.3% iron, which was defined from less than a half of the 10 kilometre strike length - indicating a strong chance of a resource upgrade in the near future.

The drilling program comprised holes to a depth ranging from 60 to 100 metres, with pre-collaring having commenced for diamond drilling, with the next step metallurgical testing to be undertaken on drill core.

Two initial holes targeting a magnetite Banded Iron Formation were drilled to about 300 metres.

The next phase of work starts this week at Telecom Hill West to pre-collar for diamond drilling, which maximises cost savings by using the diamond rig for depths where only magnetite is present.

Under this process, pre-collaring will vary from 50 to 100 metres, before the diamond drill is utilised.

Gary Stokes, managing director at Padbury, commented on the achievement.

“This program is the first significant step of a focused strategy to add to the Peak Hill Iron Project base by identifying a DSO source that could lead to early cashflow for the Peak Hill project.

“Another important aspect of this drill will be metallurgical testing of core samples from the magnetite Banded Iron Formation at Telecom Hill West."

The significance of this data is that it will provide details of the nature of the magnetite deposit, and represents another major milestone for the development of Peak Hill.

Padbury has a 70% stake in Peak Hill, with Aurium Resources (ASX: AGU) 30%.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21484/padbury-mining-to-provide-iron-ore-samples-to-interested-investors-in-china-21484.html