THE BOURSE WHISPERER: Spitfire Resources has announced a maiden Inferred JORC resource for the Contact and Contact North deposits at the company’s South Woodie Woodie manganese project in the East Pilbara region of Western Australia.
The 11.3 million tonnes at 15 per cent manganese combined initial Inferred Resource is the result of drilling conducted by Spitfire during 2010 and 2011.
Contact & Contact North combined deposit summary at 10.1 per cent manganese cut-off. Source: Company announcement
The company’s initial campaign in 2010 included 54 RC holes drilled on the Contact area, while the 234 RC hole 2011 campaign covered infill and definition of Contact as well as the Contact North deposit.
Spitfire said it is confident further drilling could add extra tonnes to the Contact North deposit , where it has read geological interpretations to suggest there is potential for high-grade mineralisation beneath the deposit’s current definition.
“This is just stage one of our manganese inventory build-out at South Woodie Woodie,” Spitfire Resources managing director John MacKenzie said in the company’s announcement to the Australian Securities Exchange.
“Geologically the region is proven via the Woodie Woodie mining operation to be one the world’s most prospective for the production of quality manganese ore.
“Spitfire’s initial JORC Inferred Resource and highly encouraging metallurgical test results from the Contact and Contact North deposits, re-affirms the enormous potential of the South Woodie Woodie project.”
Spitfire believes both the Contact and Contact North deposits have demonstrated ability to upgrade to 40 per cent manganese grade through a basic beneficiation process.
The company announced Contact North lump upgrading to a best grade of 46.1 per cent manganese in February 2012.
The recent success at Contact and Contact North has encouraged the company to believe the South Woodie Woodie geological setting holds significant potential for multiple additional deposits.
Spitfire is set to commence a large-scale Gradient Array IP (GAIP) survey program this month.
The new GAIP program will cover more than 100 square kilometres of prospective ground and will focus on areas adjacent and north of the Contact deposits.
To date Spitfire has only GAIP surveyed 29sqkm’s of the South Woodie Woodie project which covers more than 2,200sqkm’s.
Spitfire will wait on the results of the GAIP survey before proceeding with a further 10,000m to 15,000m of exploration drilling.
Spitfire has increased its resource target range to 20 to 30 million tonnes grading 15-20 per cent manganese.