THE BOURSE WHISPERER: IMX Resources has announced an increased mineral resource estimate at the company’s wholly-owned Snaefell iron ore project in South Australia.
The company has increased the Snaefell estimate to 569 million tonnes at 27.1 per cent iron using an 18 per cent iron cut-off grade.
The Snaefell iron ore project is located 12 kilometres west of the Cairn Hill iron ore JV mining operation, located 55km south of Coober Pedy.
Location of Snaefell 2012 Mineral Resource, drill holes and cross section. Source: Company announcement
The new estimate represents a 184 per cent increase on the company’s maiden resource of 200 million tonnes at 27.65 per cent iron (using an 18 per cent iron cut-off grade) reported in October 2011.
IMX said the entire upgraded resource averages over 27 per cent iron, which it considers to demonstrate the consistency of the magnetite mineralisation.
“Snaefell has exceeded our expectations and is a significant and growing asset in our portfolio of iron ore projects,” IMX Resources managing director Neil Meadows said in the company’s announcement to the Australian Securities Exchange.
“Its location, in close proximity to the Cairn Hill mine and existing transport infrastructure, makes Snaefell a key component of IMX’s South Australian magnetite growth strategy.
“We expect to commence the next phase of metallurgical drilling in the next quarter and to complete scoping and pit optimisation studies during 2012.”
IMX claims the Snaefell magnetite iron ore mineralisation extends for 2.7km, with mineralisation remaining open along strike and at depth.
The company said it believes the actual size of the resource is only limited by amount of drilling it has completed so far.
The upgraded resource block model will now be optimised as part of a scoping study which is expected to be completed in 2012.
Diamond core drill planning is also underway to test the depth extent of the Snaefell mineralisation, and to obtain further core samples for ongoing metallurgical testwork.