IMX Resources nears iron resource upgrade at Snaefell, more than doubles strike length

IMX Resources (ASX: IXR) has received final assays from its 2011 reverse circulation drilling program at the Snaefell iron ore prospect with one hole returning an intersection of 120 metres at 31.85% iron from 44 metres.

The assays confirm that high iron grades occur over wide intervals throughout the Snaefell deposit.

In addition, all new reverse circulation holes targeting the northeast extension of the Snaefell magnetic anomaly have returned significant widths of magnetite mineralisation with intersections between 10 and 102 metres down hole being reported.

Further defining the project’s potential is that the recent drilling program has more than doubled the confirmed strike length of the Snaefell magnetite mineralisation to 2.7 kilometres.

This is a substantial increase on the initial 1 kilometre core area zone previously defined in the maiden Inferred Resource of 109.8 million tonnes at 30.13% iron. 

Importantly, Snaefell is shaping up to potentially become a major long life iron ore asset to complement IMX’s Cairn Hill iron ore and copper mine and the company is well placed to be able to advance the project towards production.

Managing Director Neil Meadows said the latest drilling results confirmed the prospectivity of the Snaefell prospect and the validity of the regional exploration strategy.

“Our strategy is to continue exploring for iron ore deposits in close proximity to the Cairn Hill mine in order to optimise mine productivity and maximise the use of existing infrastructure,” he said.

The prospect has now been tested by drilling over a width of 280 metres and a depth of 300 metres, and remains open at depth and along strike.

In addition to drilling, Davis Tube Recovery metallurgical testwork was conducted on 30 new composite reverse circulation samples taken from 25 new holes throughout the prospect.

The preliminary results again confirm previous results, with magnetic concentrates of 65% iron readily achievable at a coarse grind size of 200um (unoptimised).

Crushing and grinding characteristics indicate that Snaefell is a soft ore type. Davis Tube Recovery tails continue to be evaluated to optimise hematite recovery.

The final assays will be used to compile an updated resource for Snaefell which IMX expects will be completed by mid-February.

Snaefell is 100% owned by IMX and is located within the Kangaroo Dam exploration licence (EL4649), part of IMX's Mt Woods Project. It lies 12 kilometres south west of the Cairn Hill iron-copper-gold mine and 55 kilometres south east of Coober Pedy.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24215/imx-resources-nears-iron-resource-upgrade-at-snaefell-more-than-doubles-strike-length--24215.html