THE BOURSE WHISPERER: Eastern Iron has exercised its option to acquire 100 per cent of the Nowa Nowa iron project in Eastern Victoria from Waygara Mines.
The transfer of the enclosing Exploration License to Eastern Iron was completed following approval from the Victorian Department of Primary Industries on 3 February 2012.
Under the terms of the option agreement Eastern Iron will be required to pay $100,000 and allot one million shares to Waygara on transfer of the title.
Location of Nowa Nowa iron project and infrastructure. Source: Company announcement
“We are pleased to have completed the acquisition of the Nowa Nowa iron project,” Eastern Iron managing director Greg De Ross said in the company’s announcement to the Australian Securities Exchange.
“The project is a strong addition to our existing portfolio and our current focus.
“The company has announced a maiden JORC resource estimate and is undertaking metallurgical test work that will allow us to expedite our evaluation of potential mining scenarios for the project.”
Eastern Iron recently announced a JORC Inferred Resource of 9.47 million tonnes at 49.1 per cent iron at a cutoff 40 per cent Total iron.
The company will be carrying out preliminary metallurgical test work investigating possible product scenarios.
According to Eastern Iron magnetite iron deposits at Nowa Nowa were drilled in 1955 by the Victorian Mines Department as a follow up to regional magnetic surveys.
Most drilling was centred on the largest of the magnetic targets, the Five Mile Deposit, with 27 cored drill holes completed.
Other nearby magnetic targets including the Seven Mile, Six Mile and Three Mile deposits have received some exploratory drilling but not to the same extent as Five Mile.
The company is of the opinion other potential sources of additional resource exist and these have been earmarked for further exploration.
Eastern Iron said it is investigating the potential to develop the Nowa Nowa iron deposits primarily as a source of feed for steelmaking operations.