Strike Resources (ASX: SRK) associate Cuervo Resources’ (CNSX: FE) geophysical and drilling data supports an exploration target of between 200 million and 400 million tonnes at 35% to 45% iron at the Bob 1 prospect at the Cerro Ccopane.
This has also identified two undrilled geophysical anomalies similar to Bob 1 within the Cerro Ccopane concessions in Peru.
However, Strike has decided not to report the resource estimate that Cuervo received from an independent geologist using the polygonal resource estimation method.
It noted that while it agreed with the mineralisation outlines, the resource figure includes further projections of the mineralisation outside the polygons of about 400 metres down dip.
This has resulted in about 70% of the resource being outside the polygons.
Strike will not report the resource estimate until it is amended in line with what it believes is best practice in Australia.
It noted that if accepted, the Cuervo estimate would take its total resource at the Cerro Ccopane project to a level above a trigger that reduces Strike’s security for its C$5.25m loan to Cuervo.
Cuervo had previously intersected thick zones of magnetite mineralisation at Bob 1 with notable intercepts of 112.5 metres at an average grade of 49.3% iron and 35.4 metres at an average grade of 52.4% iron.
The Bob 1 magnetic and gravity target extends over a total strike length of about 3 kilometres, with extensive outcrops of massive magnetite present along the bulk of the length of the target – the largest yet identified on the Cerro Ccopane property.
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