Aurium Resources increases DSO iron targeted drilling programs at Peak Hill

Aurium Resources (ASX: AGU) has now received the Government approvals required to expand direct shipping ore targeted exploration at the Peak Hill Iron Project joint venture in the mid-west region of Western Australia.

The new drilling will focus on an area known as Mt Padbury in a maiden campaign, and providing a boost to the prospectivity of the area geological mapping had delineated iron ore targets with potentially significant platy hematite-goethite mineralisation.

Terry Quinn, managing director, said geological mapping at the site had delineated iron ore targets with grades of up to 63.2% iron achieved from surface rock chip samples.

“This indicates that Mt Padbury is highly prospective for hematite direct shipping ore and we are excited that this much‐anticipated drilling program can now start.”

The Department of Mines and Petroleum has approved the Program of Works, conditional on avoiding impact on individual species of conservation value required by the Department of Environment and Conservation.

Aurium has a 30% stake in Peak Hill, with Padbury Mining (ASX: PDY) holding 70%.


Mt Padbury subsurface testing

The Mt Padbury drilling is the follow up subsurface testing of potential hematite mineralisation identified in exploration mapping carried out earlier in 2011.

These operations will be integrated within the ongoing evaluation drilling of the magnetite and hematite potential nearby at Peak Hill's Telecom Hill prospect.

Terry Quinn, managing director, commented, “This combined program is the largest undertaken by Padbury and is part of a focused strategy to build the Peak Hill Iron Project base by expanding and upgrading the existing magnetite resource and identifying potential DSO sources, which could lead to early cashflow.”

Peak Hill currently hosts an Inferred JORC Resource of 850 million tonnes at 27.3% iron, which was defined from less than a half of the 10 kilometre strike length - indicating a strong chance of a resource upgrade in the near future.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21674/aurium-resources-increases-dso-iron-targeted-drilling-programs-at-peak-hill-21674.html