THE BOURSE WHISPERER: Iron Ore Holdings has received the results of a Stage 2 drilling campaign conducted at the company’s 100 per cent-owned Maitland River project, located near Karratha in Western Australia.
The drilling has resulted in an increase to the JORC Inferred Mineral Resource at the project of 796 million tonnes, taking the total Mineral Resource at Maitland River to 1.1 billion tonnes, with an average resource head grade of 30.4 per cent iron.
A central area within the project, Area B, which IOH said contains over 800 million tonnes of Mineral Resource will be the company’s main focus for further work.
The company is investigating the higher grade zones within Area B with the objective of increasing overall yield, as well as increasing the recovery of the hematite mineralisation.
“A concept study will now be conducted on Area B to define the most suitable mine footprint for a magnetite operation, flow sheet parameters, road and slurry pipe options for transporting the concentrate to the proposed Anketell Port, as well as assessing a number of options for accessing water and power,” Iron Ore Holdings said in its ASX announcement.
“IOH has already engaged with the State Government on potentially securing access to the planned Anketell Port facilities and will make further submissions as soon as the development process and proponency of Anketell Port is settled.”
The company has previously indicated that should it elect to commercialise the Maitland River project, Fortescue Metals Group has the right, subject to it exercising its Iron Valley project option, to farm-in to a 50 per cent or greater interest on commercial terms to be agreed.
IOH project locations. Source: Company announcement
In addition to the Coastal Hub magnetite Resource of 1.1 billion tonnes, IOH has 306 million tonnes bedded hematite and Channel Iron Deposit (CID) Resources in the Central Pilbara Hub and 263 million tonnes of CID Resources in the Western Pilbara Hub, for a total JORC Mineral Resource of more than 1.6 billion tonnes.