THE BOURSE WHISPERER: Minotaur Exploration has announced the maiden JORC Inferred Resource for its Muster Dam deposit.
The Muster Dam deposit is one of a number of magnetite prospects Minotaur holds within the Mutooroo Magnetite project in South Australia.
Location of the Mutooroo Magnetite deposits in South Australia. Source: Company announcement
The new Inferred Resource for Muster Dam has been estimated by independent consultants Hellman and Schofield to be 1.5 billion tonnes at a Davis Tube Recovery (DTR) of 15.2 per cent magnetite.
“The issue of a JORC reported Inferred Resource represents a major milestone for the Mutooroo Magnetite project,” Minotaur Exploration said in its ASX announcement.
“It confirms the Muster Dam deposit has the scale and grade to produce the required throughput of a high-quality magnetite concentrate.
“In particular, the extremely low level of deleterious elements measured in the concentrate suggests that the product will be attractive to blast furnace consumers.
“It also confirms the continuity of grade in the formation and provides significant confidence in the ability of the other prospect areas to add significantly to the tonnage of magnetite mineralisation at similar grades.”
The assessment for the calculation of the new Resource was based on the analysis of nearly 3,000 DTR samples carried out at 45 micron grind size.
Minotaur completed a total of 49 Reverse Circulation (RC) and 10 diamond holes on a section spacing of approximately 400 metres.
Samples were composited over 4m or 5m intervals and analysed for DTR per cent magnetite.
XRF analyses for total iron and other elements were also carried out on the samples prior to DTR work (“head” samples) and on the DTR concentrate.
The Mutooroo Magnetite project is a Joint Venture between Sumitomo Metal Mining Oceania (59.1%) and Minotaur Exploration (40.9%).
The project is located 100 kilometres southwest of Broken Hill and, according to Minotaur, is laterally consistent, well bedded, magnetite-bearing strata in the Mutooroo area occurring over a strike extent of around 40 kilometres.
The recent Muster Dam drilling covered just six kilometres of strike length of the magnetite-bearing Braemar Iron Formation.