THE BOURSE WHISPERER: Namibia-focused explorer Avonlea Minerals has calculated a 33 per cent increase in the total JORC compliant Inferred Resource estimate at its Ondjou prospect, located in Northern Namibia.
The new Inferred Resource total is 693 million tonnes iron at a head grade of 23.7 per cent.
This increase has been drawn from a recently completed 2,500 metre diamond core drilling program and metallurgical test results.
Avonlea said the resource estimate is based on a strike length extension to an established area of mineralisation that was delineated in the company’s maiden JORC compliant resource estimate of 521 million tonnes at 24 per cent iron, which it announced in December 2010.
Inferred Resource outline, drill hole location and outcrop geology. Source: Company announcement
Avonlea has now commissioned a conceptual mine planning study for the Ondjou magnetite iron project to review the potential mine plan and pit design it considers could be achieved with the current upgraded inferred JORC geological resource.
The aim of the study will be to consider the optimisation of the current resource within a framework of mining, processing and production rates and costs to define potential mining pit shells.
The company anticipates this information will assist in a review of the current resource model and assess the requirements to upgrade the resource from an Inferred to an Indicated JORC resource category.
“Avonlea is pleased to report this uplift in the Inferred Resource estimate at our Ondjou iron ore project in Namibia,” Avonlea Minerals managing director David Riekie said in the company’s announcement to the Australian Securities Exchange.
“The deployment of our low cost exploration strategy to delineate the updated resource estimate leaves exploration upside potential as the resource remains open along strike with further metallurgical testing.”
Avonlea pointed out that it has a number of licences in application over the same geological formation to the north and south of our Ondjou prospect.
Once these have been granted, the company said it intends undertaking exploration work in order to unlock the prospectivity the Licence areas.