Padbury Mining to kick off drilling at Peak Hill Iron Project

Padbury Mining (ASX: PDY) and joint venture partner Aurium Resources (ASX: AGU) have recommenced diamond core drilling at the Telecom Hill prospect within the Peak Hill Iron Project joint venture to further substantiate the Inferred Resource of 850 million tonnes at 27.3% iron.

The recommencement of reverse circulation drill testing of potential direct shipping ore (DSO) material at the Mt Padbury prospect is scheduled to restart later this month, weather permitting.

This DSO program was initiated following geological mapping at the Mt Padbury prospect which identified iron ore targets with potentially significant hematite-goethite mineralisation.

An exploration target of 20-28 million tonnes at 55-60% iron has been defined for the Mt Padbury Prospect.

In early November Aurium received Government approvals required to expand DSO targeted exploration to the Mt Padbury Prospect, where 39 reverse circulation holes are planned.

DSO offers the opportunity for early cashflow and would support the development of the company’s Telecom Hill magnetite resource.

This combined drilling program is the largest undertaken by Padbury and is part of a focused strategy to build the Peak Hill Iron Project base.

Padbury has a 70% stake in Peak Hill, with Aurium holding 30%.


Aurium/Padbury Merger Discussions

In mid-November Padbury announced it had entered into formal, good faith negotiations on a possible merger with Aurium Resources.

The agreement governing the negotiations provided for a 60 day exclusivity period.

Padbury and Aurium have agreed to extend the exclusivity period by 30 days, which will enable merger discussions to continue.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24230/padbury-mining-to-kick-off-drilling-at-peak-hill-iron-project-24230.html