The ASX has granted a trading halt to IronClad Mining (ASX: IFE), pending a capital raising announcement by the company, with the potential new funds allocated to the development of the company's magnetite iron joint venture in South Australia.
The joint venture between IronClad (80%) and Trafford Resources (ASX:TRF)(20%), is located at the Wilcherry Hill project in South Australia, with early indications for a robust project with direct shipping ore.
The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70% iron with very low impurity levels.
In addition, metal recoveries of over 95% and mass recoveries of 50% and up to 75%, are significantly higher than for typical Australian banded iron formation magnetite deposits.