THE BOURSE WHISPERER: Winmar Resources (ASX: WFE) has earned a 51 per cent interest in the Hamersley iron ore project.
Once all the necessary paperwork has been attended to the Winmar Exploration Joint Venture will be formed, in respect of the Hamersley project between Winmar and Cazaly Iron, which is a wholly owned subsidiary of Cazaly Resources (ASX: CAZ).
The respective interests of each company in the JV are: Winmar 51 per cent and Cazaly 49 per cent, while Winmar will continue to manage the project.
Location of Winmar’s Hamersley iron ore project. Source: Company announcement
“Winmar is delighted to have successfully earned into a beneficial 51 per cent interest in the Hamersley iron ore project, and looks forward to working closely with its joint venture partner to maximise the development potential of the asset,” Winmar Resources said in its ASX announcement.
“The Hamersley project is an advanced exploration target with major exploration upside and development potential.”
The company has conducted a series of works programs at the Hamersley project, designed to advance its development.
These have included a $2.2 million exploration program completed in 2012, which consisted a 20 hole RC drilling program, which culminated in a major Resource upgrade.
The current Inferred Mineral Resource estimate for the Hamersley project is 368 million tonnes at 54.7 per cent iron (58 per cent calcined iron), which includes a Channel Iron Deposit zone of 343.3 million tonnes at 55.3 per cent iron (58.7 per cent calcined iron).
Winmar commenced development activities on the project in 2012, which involved advanced metallurgical work, environmental assessments and Native Title negotiations.
The company completed its latest phase of drilling at the project in October 2012, which was a 10 hole RC program, designed to define the extent of shallow high grade mineralisation in the southwest of the project area.
Results from this drilling have yet to be released; however, Winmar indicated it anticipates using them to convert a portion of the Resource to the JORC Indicated category.
Winmar claims the Resource at the Hamersley project remains open in several directions with significant intercepts to the southwest and northeast on the edge of the current drill area.