Nevada Iron (ASX: NVI) is finding high grade near surface iron ore at Buena Vista Project in Nevada that bodes well for early mining of the mineralisation in the life of the project.
First assays from current drilling have delivered up to 53% iron mineralisation from the Section 5 deposit.
The results bode well for the potential to define additional shallow higher grade JORC resources, which is most evident at Section 5.
Best intersections returned were 36.6 metres at 31.3% iron from 24.4 metres, including 10.7 metres at 53% iron, and 70.1 metres at 30.1% iron from 117 metres.
Drilling at the Section 5 deposit has encountered magnetite mineralisation over a strike length of up to 450 m, maximum widths of 250 m and to depths of 200 m where several holes terminated in mineralisation.
A review of historical drilling, at the Section 5 target, indicates potential for additional resources and higher grade magnetite mineralisation at Buena Vista.
Spectacular total iron values, over considerable vertical distances, were reported during the March quarter with numerous assays of over 50% iron reported.
Section 5 at is shaping up to be a major deposit, with initial indications from recent drilling suggesting the mineralisation is much larger than the defined exploration target of 12 to 18 million tonnes at 18 to 26% total iron.
The delineation of higher grade exploration targets and prospects is expected to lead to a revision of the existing mine plan and definition of a larger project.
Drilling at the Section 5 deposit has now encountered magnetite mineralisation over a strike length of up to 450 metres, maximum widths of 250 metres and to depths of 200 metres where several holes terminated in mineralisation.
Highlighting the size potential of the Buena Vista Project, currently identified exploration targets provide for an additional 195 to 268 million tonnes of exploration potential.
Nevada Iron has recently completed a drill program of around 16,500 metres at Buena Vista.
The company recently completed a review to assess changing the scope of the project and optimising it where possible.
This review, while not yet complete, found that increasing the Phase 1 plant throughput from 4.8 million tonnes per annum to a minimum of 6 million tonnes per annum will be beneficial for project economics.
Also, scheduling higher grade mineralisation in the initial years of the project has been deemed possible, with substantial economic benefits.
Further upside stems from the development of a Phase 2 project, which will enhance the economics and make the project more attractive to offtake financing partners.
To more fully scope the project, Nevada Iron has committed to an aggressive exploration program targeting an increase in the existing JORC Resource, as well as a conversion of the known higher grade exploration targets and prospects to JORC Resources.
The Buena Vista Project is strategically located close to established infrastructure which reduces the development costs and shortens the time taken to get the project into production.
Inclusive to the many advantages inherent in Buena Vista are the low capital cost, the low risk political environment, the cash costs which are equivalent to or better than the majority of emerging magnetite producers and the relatively short time to production.
The project also represents a much lower operational risk than most emerging producers because of the proposed scale of production.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.