THE BOURSE WHISPERER: Apollo Minerals (ASX: AON) has received the results of a recently completed Scoping Study for the development of the Sequoia deposit at the company’s 100 per cent-owned Commonwealth Hill iron ore project in South Australia.
The Scoping Study demonstrates the project is set to be economically and technically viable.
The study examined Apollo’s plans for onsite processing of the ore into a saleable concentrate averaging 68.8 per cent iron, transporting it to an iron ore export facility at Port Pirie in the Spencer Gulf via the existing, open access, heavy-haulage railway and placing it on ships via self-propelled barges owned and operated by a third party operator.
Apollo is currently planning to support further exploration and resource definition drilling and a Pre-feasibility Study for the development of an iron ore mine at Commonwealth Hill.
Commonwealth Hill tenements and location of the Sequoia deposit. Source: Company announcement
“We are very pleased to announce that the Commonwealth Hill iron ore project is shaping up to be a viable producer of very high quality iron ore products,” Apollo Minerals chief operating officer Dominic Tisdell said in the company’s announcement to the Australian Securities Exchange.
“The findings from the Scoping Study provide us with reconfirmation that the project has the ability to be cost competitive from Day one, and the potential for Apollo to be one of Australia’s next iron ore exporters.”
The Scoping Study was based on the recent geological model of the Sequoia deposit and a JORC-compliant mineral resource estimate of 72 million tonnes at 25.9 per cent iron including 19.4 million tonnes at 27.7 per cent iron Indicated and 52.6 million tonnes at 25.3 per cent iron Inferred (using a 15 per cent iron cut-off).
It also took into account the company’s associated – at-depth – exploration target of 100 to 150 million tonnes at 25 to 35 per cent iron.
Apollo indicated this target sits within a larger exploration target for the Commonwealth Hill project area of 300 to 550 million tonnes at 25 to 35 per cent iron.
Apollo said it is confident the initial JORC-compliant resource can be increased sufficiently through drilling, both at Sequoia, and at other prospects including Ibis which is yet to be drilled by Apollo.