Magnetic Resources (ASX: MAU) is exploring for gold, iron, nickel and uranium on its extensive holdings in the wheatbelt (southern Yilgarn Craton) region of Western Australia.
The Tampia North tenements, where Magnetic holds an 80% interest with rights to earn a 100% interest, cover a 30km strike on an interpreted shear zone where gold anomalies and indications of gold mineralisation have been outlined by geochemical sampling and shallow drilling.
Magnetic Resources (ASX: MAU) has discovered coarse grained magnetite over 30 kilometres of strike through reconnaissance rock chip sampling in the York area, 100 kilometres northeast of Perth.
The significance of this is the company has now increased the strike length of its targets to 105 kilometres over 10 project areas.
Magnetic continues to unearth premium magnetite at pace, with this latest discovery building on the 11 kilometre broad magnetic target recently discovered at the Cheesemans prospect, in the Western Australia’s southwest.
The company announced yesterday it had identified further zones of magnetite, with results from another two exploration targets.
Drilling was carried out over part of the Cheesemans and Buntine iron ore targets in the Wubin area, confirming the occurrence of coarse grained and conventional banded iron formation rock types.
At the Cheesemans prospect, drilling intersected two metamorphosed banded iron formation units with a best intercept of 22 metres at 28.3% iron.
Worth noting is the quality of the magnetite discovered. George Sakalidis, Magnetic Resources managing director, told Proactive Investors today the magnetite comprises 70% iron and 1.3% silica once processed, making it a premium quality product.
“Now that is unusually enriched in iron and very low in silica, which makes it a premium product and probably one of the best magnetites in Western Australia.”
The York rock chip sample results confirm the occurrence of coarse grained Jubuk style and conventional banded iron formation rock types associated with geophysical anomalies.
These anomalies extend further north of Magnetic's advanced premium magnetite project at Jubuk, which has defined magnetite over 4.3 kilometres of strike.
One sample from the York area represents 30 metres of outcropping coarse grained magnetite grading at 38% iron, 40% silica, 2% aluminium and 0.05% phosphorus.
Another sample represents weathered and fresh metamorphosed gneissic banded iron formation associated with a broad magnetic anomaly of 4 kilometres by 0.5 kilometres.
This sample returned grades of 45 to 49% iron, 27 to 30% silica, 2% alumina and 0.02% phosphorus.
These latest discoveries have attracted interest from global iron ore players.
Sakalidis said the more magnetite targets Magnetic finds, the more interest the company receives from international trading houses and iron ore companies.
“It’s getting big enough to gain the interest of the bigger producers, and it is premium quality material which is quite unusual in itself.”
North American iron ore producer Cliffs Natural Resources is one company that has shown interest in Western Australia's iron ore offerings after recently acquiring the Yerecoin Project, which borders Magnetic's Calingiri Project.
Cliffs has been drilling at Yerecoin in the hopes of discovering premium quality magnetite.
This bodes well for a potential joint venture partnership or substantial investment in Magnetic's new discoveries in Western Australia.
Importantly, both of the new discoveries are located in proximity to rail infrastructure, providing a higher advantage due to the lower investment required to transport ore to port.
Magnetic now plans to undertake follow up sampling over the new exploration targets to determine whether the coarse grained magnetite is a premium quality like the Jubuk and Cheesemans projects.
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