THE BOURSE WHISPERER: Nevada Iron (ASX: NVI) has released an updated resource estimate for the East deposit, located at the company’s Buena Vista iron project in Nevada, United States of America.
The new estimate has come in at:
– 28.8 million tonnes grading 19.7 per cent total iron for contained iron of 5.7 million tonnes at a 10 per cent total irone cut off in the Inferred category.
The resource includes a higher grade core of:
– 12.0 million tonnes grading 25.9 per cent total iron for contained iron of 3.1 million tonnes at a 10 per cent total irone cut off in the Inferred category.
Nevada Iron said the new resource contains approximately 40 per cent more iron than its previous estimate and has taken the total contained iron in the project resource base to 33.4 million tonnes.
The East deposit is located approximately one kilometre east of the proposed West deposit pit.
Buena Vista project magnetic anomalies. Source: Company announcement
The deposit is near surface and contains a high-grade core averaging 25.9 per cent total iron, which Nevada indicated is the highest grade resource to be defined to date on the project.
“Further drilling is planned to upgrade the resource to the Indicated category, and to determine if there is potential to expand the resource given the limited drilling on the East deposit to date,” Nevada Iron said in its ASX announcement.
“All deposits defined to date are shallow and have relatively minor amounts of overburden that results in low waste:ore ratios for the designed pits.
“The mining schedules being developed for the current study envisage processing the higher grade cores of each deposit in the initial part of the mine life, while stockpiling the lower grade halo material for treatment in the latter part of the mine life.”
The company considers the expanded East deposit resource, along with the West deposit and Section 5 resources, support its belief sufficient near-surface, low waste:ore ratio mineralisation is present to support the development of the Phase 1 project to produce in the order of 2.4 million tonnes per annum of high-grade iron concentrate.
Drilling has been planned to take place on other exploration targets at South West, Iron Point and BV-D during the second half of the year, which Nevada anticipates will underpin the further expansion of the project.
“Conversion of the exploration targets to resources has been successful to date for the East and Section 5 deposits and there is significant potential to expand the resource base given the exploration targets of 183 million tonnes to 250 million tonnes with a grade range of 16 per cent to 21 per cent total iron,” Nevada iron said.