Padbury Mining and Aurium Resources have announced a maiden direct shipping ore (DSO) inferred mineral resource at the Telecom Hill East deposit within their flagship Peak Hill iron joint venture.
The JORC resource is 11.5 million tonnes @ 58.56% iron, 9.64% silicon, 2.29% aluminium and 0.21% phosphorus hosted in the Robinson Range Formation of banded iron in Western Australia’s mid-west region.
The maiden estimate is a major milestone for the Peak Hill project which is about 450km northeast of Geraldton. The companies say it confirms the strong potential of the Telecom Hill prospect.
Results from 41 drill holes completed between October last year and March 2012 were used to calculate the estimate, along with geological and sampling data.
The exploration team says there is huge potential for additional resources to be identified at the Telecom Hill area. There are immediate targets planned for closer spaced drilling to upgrade the resource, with mineralization open to the east and west that has not yet been adequately tested. Drilling to date has tested only 6km of the 10km strike length of the iron mineralization.
In June, Padbury announced highly encouraging results from its exploration at an area about 3km northwest of the Mt Padbury DSO deposits, with new hematite outcrops identified from rock chip samples.
In 2009, the Peak Hill project JV partners recognized its potential to host significant iron ore deposits. The Telecom Hill prospect was recognized as a source of large tonnages of magnetite beneficiation feed ore (BFO), and there have been more recent DSO discoveries at Mt Padbury 30km to the west.
Padbury has scheduled a program to develop the project over the next three years, with production targeted for 2015-2016.