Padbury Mining completes diamond drilling at Peak Hill iron project

Padbury Mining (ASX: PDY) and partner Aurium Resources (ASX: AGU) are progressing Pre-Feasibility work at the Peak Hill Iron Project with the completion of a diamond core drilling program.

Peak Hill has a JORC Inferred Magnetite Resource of 850 million tonnes at 27.3% iron at Telecom Hill.

A total of 619 metres of diamond core was collected, geologically logged, photographed and rock quality designation measured on the oriented core.

Meanwhile, a reverse circulation drilling program is underway, testing for direct shipping ore as well as magnetite, with 4,000 metres drilled to date.

This program was designed to follow up on geological mapping which identified iron ore targets with potentially significant hematite-geothite mineralisation.

A hematite exploration target of 10 million tonnes to 55 million tonnes at 55-60% iron has been set for Peak Hill.

Earlier this week, Padbury and Aurium signed a binding Scheme Implementation Agreement for a merger that will simplify the development of Peak Hill.

Under the agreement, Padbury will acquire Aurium, combining its 70% interest with Aurium’s 30% interest in the project.

Aurium shareholders will receive three Padbury shares for every one Aurium share held, which represents a premium of about 42.8% based on the last trading price prior to the announcement and a 47.4% premium to the 30 day volume weighted average price of the two companies’ shares.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/25394/padbury-mining-completes-diamond-drilling-at-peak-hill-iron-project-25394.html