Energio (ASX: EIO) continues to return high grade assays from its Agbaja Iron Ore Exploration Project in Nigeria, today releasing its fourth batch from a recent 20,000 metre drilling program.
The latest results once again have exceeded the company’s expectations, coming in at higher than the initial target range of 48-53% iron.
The best result returned reached nearly 54% iron and continues the positive run of assays released to date from Agbaja.
Indicating the highly prospective nature of the project, since the completion of the 200 drill holes at the project, the assays released to date have either been at the higher end of the target range or exceeded it.
Earlier this month a third batch of assays returned grades of up to 55% iron confirming that the grade and thickness of the ore body is consistent with previous results.
Chairman Ian Burston said the latest results continue to be very encouraging, as they appear to be homogeneous.
In addition to completing the analysis of drill samples, over the next few months Energio will also be selecting samples for metallurgical testing to determine optimal ways of processing the material.
Agbaja has a resource potential of 1-2 billion tonnes of iron ore.
The drilling program, which is aimed at defining a maiden JORC Resource, is on track for completion in the June quarter of 2012.
Evolution to Junior Resource Explorer
Shares in Energio are in suspension as the company makes the shift to iron ore.
In 2011 the company exercised its call option with TGP to acquire 100% of the fully paid ordinary shares in KCMH Australia.
KCMH Australia is the holding company of KCM Nigeria which owns of a package of iron ore licences in Kogi State, Nigeria, including the Agbaja Iron Ore Project.
Kogi State is an iron ore rich region with abundant existing reliable infrastructure, such as sealed roads and highways and rail links to the Port of Warri.
The Agbaja licences contain magnetite in banded iron formation, along with rich oolitic deposits with a conceptual exploration target of 1-2 billion tonnes of iron ore at a minimum of 30% iron, with rock chip samples within the project area returning grades of up to 55% iron, and showing potential for the presence of direct shipping ore.
Energio was previously an ASX-listed toy and gaming business for some years, but the attractive investment opportunity and the steep increase in the price of iron ore were drivers too great to ignore.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25374/energio-again-delivers-higher-than-expected-iron-ore-grades-from-agbaja-in-nigeria-25374.html