NEWS 850Mt at 30%-43% Fe
Central Iron's Perinvale target at up to 850 Mt Fe
2012-02-10 13:04 ET - News Release
Mr. Brett Hodgins reports
CENTRAL IRON ORE LIMITED: PERINVALE SOUTH IRON ORE HUB EXPLORATION TARGET 510MT TO 850MT AT 30%-43% FE
Central Iron Ore Ltd.'s exploration target on the Perinvale South iron ore hub has an estimated 510 to 850 million tonnes. The company has also provided an iron ore update.
Highlights
Perinvale South iron ore hub (Walling Rock project -- E30/414 -- CIO 100 per cent)
- Initial exploration target has been estimated to be between 510 and 850 million tonnes of iron mineralization at an expected grade of 30 per cent to 43 per cent iron;
- Regolith mapping and rock-chip sampling completed;
- Airborne magnetic survey completed;
- Detailed mapping and rock-chip sampling completed;
- Targeted flora survey completed;
- Program of work lodged for first-phase drilling program;
- 250-per-cent increase in tenure to 1,150 square kilometres at the Perinvale South iron ore hub.
Perinvale South iron ore hub (Perinvale South project -- E30/415 -- CIO 100 per cent)
- Regolith mapping and rock-chip sampling completed.
Diemals iron ore hub (CIO 100 per cent)
- Regolith mapping and rock-chip sampling completed at E77/1749 and E77/1757.
Perinvale North iron ore hub (CIO 100 per cent, Pacific Ore Ltd. earning 90 per cent)
- Regolith mapping and rock-chip sampling completed at E57/818.
The estimates of exploration target sizes mentioned in this announcement should not be misunderstood or misconstrued as estimates of mineral resources as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the determination of a mineral resource.
Yilgarn iron ore project area
The company now has a total of 15 iron ore tenements covering 1,588 square kilometres that are located within the Yilgarn iron ore province in Western Australia, of which nine tenements are granted and six tenements are pending applications. The Yilgarn iron ore province is considered highly prospective, given its history of large-scale iron ore production, with the Cliffs Natural Resources-owned Koolyanobbing operation (formerly operated by Portman Ltd.) currently producing at a rate of approximately eight million tonnes of direct shipping ore (DSO) per year. The Yilgarn iron ore province is increasingly being recognized as an attractive location for the development of iron ore given its proximity to rail and access to ports.
Perinvale South iron ore hub
Exploration target (Walling Rock project -- E30/414)
Central Iron Ore's 3-D and 2-D magnetic modelling of recently flown helicopter-magnetic survey data over the company's 100-per-cent-owned Walling Rock project has indicated a potential exploration target estimate of between 510 million tonnes to 850 million tonnes (with a 25-per-cent range). Of this, 30 million tonnes to 75 million tonnes are potentially enriched, near-surface mineralization above the primary bedrock mineralization.
The exploration target for primary banded iron formation (BIF) and potential near-surface, enriched material has been estimated based on a number of assumptions and limitations which include, among other things:
- The strike length of the modelled magnetic anomalies represents ore grade BIF mineralization;
- The geometry of the magnetic sources remain constant over their entire length;
- The model depth extent has been fixed to 200 metres;
- The thickness of the potential enriched, near-surface material has been calculated as the difference between ground level as defined by the aeromagnetic survey DTM and the depth to the top of the model at the model centre, capped at 25 metres where required; no correction or adjustment has been made for variations between the ground level and the top of the model along strike;
- 100-per-cent recovery and no dilution;
- The specific gravity of the BIF and enriched material is 3.2 tonnes per cubic metre;
- It does not take into account the depth to top or effect of dip of the models and how this may impact potential mining viability.
Regolith mapping and rock-chip sampling (Walling Rock project -- E30/414)
Detailed regolith mapping and rock-chip sampling have been completed. A total of 16 rock-chip samples were taken during the mapping (eight regolith samples and eight BIF samples) with a peak iron grade of 37.93 per cent iron. The mapping confirmed the occurrence of banded iron formation with true thickness of up to 100 metres. The sampling also confirmed the presence of banded iron formation-enriched in iron by surficial weathering processes. Areas for future sampling programs have been identified.
Airborne magnetic survey (Walling Rock project -- E30/414)
A low-level, high-resolution airborne magnetic survey was conducted over the central and eastern part of the Walling Rock project in the Perinvale South iron ore hub. The survey involved 917 line kilometres of flying with lines spaces at 100 metres. The data have been processed and reviewed by an independent geophysical company.
Detailed mapping sampling program (Walling Rock project -- E30/414)
A targeted sampling program was undertaken in December, 2011, by Strategic Resource Management Ltd. The program focused on sampling across the exposed BIF ridges. Coarse-grained magnetite was exposed at surface and the BIF ridges were mapped along strike for eight kilometres and up to 110 metres thick. A total of 37 rock-chip samples were collected with assay results ranging from a peak value of 43.11 per cent iron to 30.18 per cent iron.
Flora survey (Walling Rock project -- E30/414)
A level 1 flora and fauna study was recently completed by Umwelt (Australia) Pty. Ltd. The survey was designed to identify records or any potential occurrence of conservation significant flora and fauna. A desktop study and an infield survey were completed in early February, 2012. The results of the study and survey were that:
- No conservation-significant flora was identified within the proposed drilling area.
- It is highly unlikely any future exploration activity will impact on species identified by the desktop review.
Perinvale South iron ore hub expanded tenement portfolio
The Perinvale South iron ore hub now covers a total of 1,150 square kilometres. The company believes this expanded project provides a significant continuous platform for the exploration of iron ore and will provide a new future phase of growth for the company.
The initial strategy and objective of the company are to evaluate the occurrence of both magnetite ore and DSO within the Perinvale South iron ore hub, and to gain an initial understanding of their respective resource potential.
Brett Hodgins, president and chief executive officer, said: "We are delighted that our Perinvale South iron ore hub has the potential to host a large body of iron mineralization. This, combined with our new tenements, has formed a significant land package at this iron ore hub. This combined with our funding reinforces CIO's strategy to focus on future exploration programs to identify sufficient DSO resources to support a start-up project."
Qualified person
Andrew Spinks, BAppSc, GradDip (mining), member of AusIMM, consultant geologist, a qualified person as defined in NI 43-101, has reviewed and approved the technical content of this announcement.
The information in this announcement that relates to geophysical exploration results is based on information compiled by Mathew Cooper, BAppSc (honours) in geophysics, of Core Geophysics, who was engaged by CIO to provide geophysical consulting services. Mr. Cooper is a member of the Australian Institute of Geoscientists, and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Cooper consents to the inclusion in this announcement of the information which he provided in the form and context in which it appears.