THE BOURSE WHISPERER: Talga Gold (ASX:TLG) has updated the Resource estimate for the company’s 100 per cent-owned Masugnsbyn iron project in northern Sweden.
The new JORC-compliant Mineral Resource estimate for the Masugnsbyn iron project stands at 87.2 million tonnes at 29.9 per cent iron as magnetite (Femag) using a cut-off grade of 20 per cent Femag.
This replaces the previous estimate of 44.1 million tonnes at 30.9 per cent iron the company released in February.
Masugnsbyn is one of a number of iron projects Talga gained from its recent acquisition of TCL Sweden from Teck Resources in June.
Talga’s iron projects located in northern Sweden. Source: Company announcement
“We continue to realise value via our purchase of TCL Sweden Ltd from Teck Resources in June this year,” Talga Gold managing director Mark Thompson said in the company’s announcement toteh Australian Securites Exchange.
“As we interrogate the acquired database we find further encouragement for confidence in the projects to host several mining opportunities.”
Talga gold has reviewed the historic data, which it said has revealed strong intercepts of iron mineralisation from previous drilling carried out at the Vittangi project.
At the Vathanvaara prospect historic drill intercepts include:
– 235 metres at 35.9 per cent Femag; and
– 124m at 43.4 per cent Femag.
The company said these results highlight potential for future resource development.
The Vittangi project is within 20 kilometres of the railhead and LKAB mines near Svappavaara and could potentially share some infrastructure with the adjacent Nunasvaara graphite deposit.
“The iron ore deposits are near our graphite deposits, and there are synergies in assessing both from a common operational base,” Thompson said.
“With only a modest amount of drilling we can test the potential of the iron exploration targets to convert to resources over the next 12 months, while reviewing options for commercialisation.”