Brazilian iron ore resource for Beadell

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THE BOURSE WHISPERER: Self-confessed gold development company Beadell Resources has estimated a maiden JORC itabirite iron ore resource the Tap Norte Banded Iron Formation in Brazil.

The Resource estimate of 209.1 million tonnes at 36.1 per cent iron includes Measured and Indicated resources of 75.4 million tonnes at 37.3 per cent iron and Inferred resources of 133.7 million tonnes at 35.4 per cent iron.

Beadell said potential extensions to the resource from the Tap Sul and Tap Leste areas are estimated to contain an additional 120 Mt to 180 Mt of itabirite iron ore.

These are currently undergoing an aggressive drill campaign by the company.

“This is an outstanding maiden iron ore resource which will grow significantly over the coming months,” Beadell Resources managing director Peter Bowler said in the company’s announcement to the Australian Securities Exchange.

“This far outstripped our expectations and we are now quickly moving to determine the best way to maximise the value of this resource for our shareholders.”

The Tap Norte iron ore resource covers a single contiguous BIF unit over a strike length of approximately four kilometres averaging 250 metres wide.

The BIF has been extensively drilled for gold and until recently only a handful of iron ore sampling had been completed.

Beadell has carried out an iron ore resampling and drilling program over the last 15 months, which has defined a maiden iron ore resource comprising 31.7 Mt at 37.9% iron of colluvium ore, 148.4 Mt at 36.2% iron of friable saprolite oxide and 29.1 Mt at 33.6% iron of friable transitional zone Itabirite.

“We are in discussions with Anglo Ferrous in relation to these iron ore resources on our mining concession to either continue on with negotiations centred around a Joint Operating Agreement whereby Anglo pay for iron ore extracted out of our gold pits or, our preferred outcome, to “go it alone” if the parties are unable to reach agreement on the terms of such a Joint Operating Agreement in respect of Beadell’s mining concession,” Bowler said.

“To this end we will immediately commence a detailed scoping study which will include a beneficiation plant and all associated logistics.

“I am confident that the outcome of negotiations will either materially improve the economics of our gold project or, alternatively, enable Beadell to proceed with a substantial iron ore business on a standalone basis.”