Pluton Resources Ltd hits high-grade iron ore at Irvine Island

Pluton Resources (ASX: PLV) has advised that drilling has intersected visually high grade and potentially direct shipping ore, west of the current Inferred Resource on Hardstaff Peninsula, Irvine Island, Western Australia (E04/1172).

Drilling is targeting a total 100Mt of iron ore on Hardstaff Peninsula, Irvine Island, as an extension of the current Inferred Resource of 54Mt @ 49% iron (Fe).

This target is contained entirely within the primary Yampi Member target horizon and does not include additional iron mineralisation contained within overlying Wonganin Sandstones.

Positive scoping level mining studies have been conducted by AMC Mining Consultants Melbourne on the Inferred Resource based on 2009 iron ore prices.

Managing Director, Tony Schoer, said “We are now drilling well outside of the current Inferred mineralised envelope. Results to date indicate that we will reach our target of 100Mt for Hardstaff Peninsula.”

“Drill Hole ID6B confirms our belief that the Yampi is thickening, and that grades are improving, as we head west. It is particularly encouraging that we are seeing increasing volumes of material of high quality.”

Drill Hole ID6B located on the western side of the Hardstaff Peninsula has intersected the targeted Yampi Member.

Visual examination of the drill core from ID6B by on-site geologists during logging has identified higher grade zones of iron mineralisation within the Yampi Member target horizon.

Drill Hole ID6B has intersected 60 metres of iron mineralisation, including 24 metres within the Yampi Member that visually appears to be high grade and potentially suitable for direct
shipping.

The company said the hole continues to confirm the extension of the mineralisation to the west and outside the current Inferred Resource.

Drillcore from Hole ID6B has been logged, cut, and sent to Ultra Trace Laboratories, Perth for assay. Assay results are pending.

Drilling has commenced on Hole ID6C collared from the same location as Hole ID6B. Drill Hole ID6C is angled towards the south west and is expected to intersect further down dip extensions of the mineralisation encountered in Drill Hole ID6B.

The company expects to release drill results for Hole ID12A in the next week. Updating of the resource model is expected to commence in approximately four weeks time following te receipt of assays from Drill Hole ID6B.

http://www.proactiveinvestors.com.au/companies/news/6515/pluton-resources-ltd-hits-high-grade-iron-ore-at-irvine-island-6515.html