Apollo Minerals (ASX: AON) completed a maiden drilling program at Mt Oscar in Western Australia. Significant magnetite mineralisation was intersected in all 5 RC holes drilled.
The Mt Oscar iron ore project is located 25 kilometres south of the port of Cape Lambert and Aquila’s proposed multi user Ankatell Point port. It is also close to existing roads, rail infrastructure and towns such as Karratha, the major regional centre.
The expectation, based on the geophysical modelling, was that the drilling would produce combined intercept widths totalling 560 metres whereas the drilling produced total intercept widths of 768 metres. The thickening of the BIF appears to be associated with tight folding resulting in these significant intercepts.
Downhole intercepts of magnetite mineralisation ranging from 16 to 168 metres having iron (Fe) grades ranging from 31.9% to 36.9% have been encountered within the two principal horizons targeted. The average iron grade for the intercepts reported is 35.2%. These results compare favourably with other magnetite projects in the Pilbara region. The mineralisation remains open at depth and along strike for both horizons with the deepest holes extending to a vertical depth of 300 metres.
Shallow cumulative intercepts of 271 metres @ 34.8% Fe and 192 metres @ 35.9% Fe were returned from 14 metres in hole OSRC004 and 25 metres in hole OSRC001 respectively. Several individual composite assays exceeded 40% Fe with the highest being 43.8% Fe returned from the composite sample comprising between 74 metres and 79 metres down hole OSRC004.
A total of 152 five metre composite samples have been submitted to an independent laboratory for further magnetite‐specific metallurgical testwork including Davis Tube Recovery or DTR analysis. This work is being undertaken under the supervision of an independent specialist metallurgical consulting group, and the results are expected early during the March Quarter 2010.
Apollo has regained control of its 100% held Commonwealth Hill Iron Project following the termination of the joint venture agreement as announced on 29 December 2009. Apollo has commenced work on the assessment of the exploration potential for iron.
Previously, Apollo agreed to purchase from Thundelarra Exploration Limited's tenement E47/1304, known as Mt Oscar East, with respect to all mineral rights.
Mt Oscar East is located 10 kilometres east of Apollo’s existing Mt Oscar Project and is prospective for magnetite and haematite iron ore. Mt Oscar East has excellent infrastructure, being adjacent to the sealed North West Highway and 40 kilometres to the south east of the port of Cape Lambert.
Apollo has concluded the transaction having received native title consent and has paid $225,000 in cash for Mt Oscar East. Ground‐based exploration activities including geological mapping will commence upon receiving confirmation the licence has been transferred into Apollo, with a view to finalising plans for a drilling program.