REMODELLING by Radar Iron of the iron ore resource at the Yerecoin Main deposit has resulted in about 25% of the resource being upgraded to the indicated category. There are 130.8 million indicated and inferred tonnes at the deposit at an overall grade of 68% concentrate iron.
The indicated resource comprises 31 million tonnes at a grade of 67.6% concentrate iron. The previous estimate allocated all material to the inferred classification. The estimates for the Yerecoin South and North deposits remain unchanged while the total Yerecoin resource now stands at 388.3 million tonnes @ 67.8% concentrate iron.
During the re-estimation an additional 95 pre-existing RC drill holes, not previously used, were incorporated, resulting in greater data density and hence greater confidence in the output. The mineralization continues along strike so the resource has potential to increase in size following further drill testing.
The significance of the upgrade is that it provides greater confidence in the resource base and in particular allows ore reserves calculation and subsequent financial modelling to be completed for the Yerecoin Main deposit. Pit optimization work was scheduled to commence in September.
The new resource for Yerecoin Main is about 16 million tonnes lower than the previous estimate, largely resulting from the updated geological interpretation but Radar Iron says this is not significant from an exploitation perspective.
Radar Iron announced in April the purchase of a large iron ore tenement holding in the southwest of Western Australia. The project area contains the major Yerecoin deposit within approximately 150km of Perth and is adjacent to an accessible rail line.
The company also recently provided an update on the transport option studies for the project. Its aim is to bring the project into production in 2016 and then following optimization of the processing technology, reach the corporate objective of producing around 2 million tonnes of high grade and high value concentrate.
Work completed to date confirms it is feasible to transport the ore by road and or rail to both Fremantle and Geraldton ports. The studies are being completed by Radar personnel in conjunction with leading WA based project delivery company Engenium.
Rail line capacity is available to both Geraldton and Kwinana and discussions continue with the operators to better define costs and optimize the haulage path selection.
There has been confirmation from port users at both Geraldton and Fremantle that there is capacity for the stage 1 project production profile through either the bulk export berths and/or through retainer loading at the normal export berths. All options are being reviewed to better define costs and capacity.