Trafford Enters into Iron Ore Agreement with Independence Group

THE BOURSE WHISPERER: Trafford Resources has announced to the ASX that it has signed a letter agreement with Independence Group NL whereby Trafford can enter into a Joint Venture for the iron ore rights of two Mid-West iron ore projects, Twin Peaks and Moorarie, northwest of Geraldton, Western Australia.
 
The Twin Peaks project covers over 20kilometres of a highly prospective, north-south striking, Banded Iron Formation (BIF) belt.

 

Midwest Iron Ore Projects and proposed Trafford/Independence JV tenements . Source: Company announcement

No drilling for iron ore has been undertaken on the Twin Peaks tenements and only minimal drilling targeting iron ore has been completed on the Moorarie tenements.

However, recent exploration programmes of aeromagnetics, ground gravity and rock chip sampling have been completed over the entire belt identifying large Direct Shipping Ore (DSO) potential.

The Moorarie iron ore project is approximately 40km northeast of the Jack Hills iron ore mine and infrastructure, currently being developed by Mitsubishi Corporation.

As part of Trafford’s due diligence process, a massive hematite outcrop was located at the Woolbung Well prospect within the Twin Peaks project.

Assays of grab samples returned up to 67.7 per cent iron with low impurities.

Trafford intends to identify all iron targets within the tenements and and prioritise the Direct Shipping Ore (DSO) targets for drilling later this year.

Trafford may earn up to 80 per cent of the iron ore rights in the project through milestone exploration expenditure.

Trafford will manage the joint venture, the document for which will be drawn up and signed by both parties in the coming weeks.