Dome Gold Mines has announced a maiden JORC-compliant resource of 131.6 million tonnes at the Sigatoka Iron Sand Project on the island of Vitu Levu. The resource includes 25 million tonnes in the indicated category at 11.6% HM at Sigatoka River.
It also includes inferred resources of 100.7 million tonnes @ 17% HM at the onshore Kulukulu prospects and 5.9 million tonnes @ 11% HM at Sigatoka River.
The resource consists of detrital magnetite and other heavy minerals in a coastal sand deposit. The iron sands will be dredged from the river bed and processed by gravity and magnetic separation to produce a saleable product ready for export.
In addition to magnetite concentrate, non-magnetic heavy mineral concentrate, and sand and gravel suitable for industrial or land reclamation uses are expected to be produced during processing.
Dome’s new CEO John McCarthy said: “It is an exciting milestone for Dome to have completed this maiden resource estimate for the Sigatoka project, having only acquired the project in recent months. We are aiming to develop a robust magnetite dredging project at that will help fuel our further growth to become a dominant player in Fijian mining.
“Having confirmed the resources at Sigatoka, we are now moving ahead to prepare an application for a Mining Licence that we anticipate submitting before the end of 2014.”
The Sigatoka River mouth has for many years been known for sand deposits that contain the iron ore mineral magnetite in detrital form. Since 2012 Dome’s subsidiary Magma Mines has been undertaking testing of the sands using its own D60 sonic drill, a method that provides core-like samples of the sand.
Dome has also announced the appointment of John McCarthy as CEO. He has more than 40 years’ experience in the mineral exploration and mining industry, and until the recent merger with Dome, was a director of Magma Mines, overseeing work on the Sigatoka iron sand project.