Spitfire Resources (ASX: SPI) is an emerging Australian resource company focused on the exploration and development of raw materials for the carbon steel and energy sectors.
Spitfire’s flagship asset is the South Woodie Woodie Manganese Project, which covers a total area of 1,800 square kilomeres in Western Australia’s emerging East Pilbara Manganese Province – a region renowned globally as a major source of iron ore and manganese for the Asian steel industry. Spitfire has defined a JORC compliant manganese resource inventory of 2.94Mt @ 7.07% Mn at the Tally-Ho deposit.
Spitfire Resources sees shares spike after drilling recommences at South Woodie Woodie
Emerging minerals company Spitfire Resources (ASX: SPI) has commenced a program of follow-up drilling at the Tally-Ho deposit in the Pilbara, leading to a 25 per cent increase in the share price.
Following news of the drilling at the Perth-based company’s 80 per cent-owned flagship South Woodie Woodie manganese Project in the Pilbara region, shares at 12.38pm were up 3c, or 25 per cent, to 15c.
The Perth-based company’s new program, comprising Diamond and Reverse Circulation drilling, will focus on testing extensions to the north-east of the initial resource announced last month.
The manganese project is located approximately 50km down-strike to the south from the 1Mtpa Woodie Woodie manganese mine.
Spitfire’s initial exploration success at South Woodie Woodie has been within the Southern Target Area, where it has defined a near-surface manganese deposit at the Tally-Ho Prospect, in an area which has had little historical exploration.
The mineralised horizon at Tally-Ho extends over an interpreted strike length of about 900m and the new round of drilling will assess the potential to further increase the JORC resource tonnage.
In addition, the diamond drilling will allow the company to accurately determine seam width and grade, as well as provide quality metallurgical samples.
Given the geometry and distribution of the seams at Tally-Ho, this work is considered to be central to determining the future economic potential of the deposit.
The drilling program is expected to take around two weeks to complete.
Spitfire is also completing a detailed interpretation of the results of the recently completed airborne EM survey over the broader Target Area which includes the Tally-Ho Deposit. Numerous areas of interest have already been identified from this work.
The company will announce details of the exploration initiative, as well as proposed exploration and drilling targets for the 2010 field season one the work has been completed.
