Eastern Iron upgrades Nowa Nowa Resource

THE DRILL SERGEANT: Eastern Iron (ASX: EFE) has announced an upgrade in the resource estimate for the Five Mile Iron deposit at the company’s wholly-owned Nowa Nowa iron project, located near Bairnsdale in East Gippsland, Victoria.

The upgrade is the result of recent drilling, which has provided Eastern Iron with further definition of the resource.

 

Five Mile prospect – drillhole locations. Source: Company announcement

 

This has resulted in partial conversion of existing Indicated and Inferred resources to a Measured category.

Eastern Iron said recent resource drilling it has carried out at Five Mile has upgraded its confidence level of the existing resource at Five Mile with the addition of 2.1 million tonnes of Measured Resource.

The total Resource for Five Mile has been estimated at 9.6 million tonnes at 50 per cent iron at a lower cut-off grade of 40 per cent total iron.

“This is a pleasing result and increased confidence in the resource model will assist in mine planning and production scheduling studies that form part of the ongoing feasibility study into the development of the Five Mile deposit,” Eastern Iron managing director Greg De Ross said in the company’s announcement to the Australian Securities Exchange.

Eastern Iron is now carrying out a feasibility study into the potential mining of magnetite-rich iron ore at the Five Mile deposit.

The company has proposed iron ore would be mined at Five Mile then processed into saleable product at site and trucked to an export port at Two Fold Bay south of Eden in southern New South Wales.