Royal Resources doubles Razorback

THE DRILL SERGEANT: South Australia-focused iron ore company Royal Resources has posted a 94 per cent increase in the Phase II JORC compliant Inferred Resource at the Razorback Ridge area.

The Resource now stands at 537.2 million tonnes at 25.5% iron.

“Almost doubling the resource announced last year is an outstanding achievement and clearly demonstrates how robust and consistent the Razorback deposit is,” Royal Resources managing director Marcus Flis said in the company’s ASX announcement.

“With the expected imminent resumption in drilling, I am very confident that by year’s end we will add to this in line with the target announced for the Razorback Ridge area on 24th March, 2011.

“The value of Razorback’s access to existing, open access rail and port is emphasized by the events around the proposed Oakajee Port development in Western Australia and how its uncertainty has directly affected the feasibility of an entire iron ore district.”

The Razorback Ridge – Razorback West – Interzone prospects occur within the Red Dragon project.

The drilled zone covers a strike length of approximately five kilometres of the Braemar Iron Formation.

A Phase One drilling program carried out by Royal on Razorback Ridge in 2010 defined a maiden resource of 277 million tonnes.

Phase Two of the drilling program, of approximately 17,000m, commenced in January 2011.

Due to changes in the application of the Native Title Act, drilling was suspended with the completion of only 11,677m; however, 47 inclined RC holes for 7,966m and 21 inclined diamond core holes for 3,711m had been completed.

Royal used most of these holes in the Resource estimation while some drilled for metallurgical testing purposes.

The resource has been calculated to a depth of 240m to 300m and is based on a geological cut-off, rather than a grade cut-off.

The resource remains open to the west, the east, and down dip. Royal expects to resume drilling in the next few weeks, which will be focused on the Iron Peak prospect to the east of Interzone.

The company also intends to complete the planned drill out of Unit G that is parallel and to the north of the current resource as well as further drilling at the Ironback Hill prospect in the Pualco project.

Royal is currently undertaking work to lift the Razorback Ridge Inferred Resource to Indicated status in support of the Pre-Feasibility Study that is also currently underway.