Energio targets iron ore maiden JORC Resource at Agbaja Plateau in first half 2012

Energio (ASX: EIO) is preparing to launch an extensive 20,000 metre drilling campaign at the Agbaja Plateau Iron Ore Exploration Project in Nigeria, which has the potential to deliver the company a maiden iron ore JORC Resource in the first half of 2012.

Chairman Nathan Taylor said Energio is extremely pleased with recent developments at the project. “Despite the recent unseasonable wet weather, drilling will be underway in the next few days and we remain very confident that the drilling program and other activities will conclude as planned in the first half in 2012.”

Drill hole location has already been surveyed and appropriately marked with a total of 680 hole sites identified for drilling.

Additional equipment and local work parties have been assembled in Nigeria and training of the staff responsible for preparing and packing the ore for sampling is well underway.

The company intends to conduct the sample preparation of ore material in Ghana before forwarding to Perth, Western Australia for detailed analysis.

Energio plans to soon appoint a consultant to administer and prepare a report on its exploration results.

Preparation is also underway to begin metallurgical testing to enable processing options to be progressed in parallel to the resource definition process.

A scoping study of the project has identified a 10 million tonne per annum open cut mining operation utilising railway and transhipping from Warri River port. Rock chip assays to date have returned grades of up to 55% iron.

Energio's iron ore leases are proximal to an existing iron ore railway, road and port infrastructure and a 3.3 million tonne per annum Itakpe iron ore beneficiation facility, which is government owned – presently on care and maintenance.

The Agbaja Plateau project can be accessed via road, rail and air from the company’s Nigerian head office in Lagos. A network of sealed bitumen roads exist throughout the target project areas.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20811/energio-targets-iron-ore-maiden-jorc-resource-at-agbaja-plateau-in-first-half-2012-20811.html