Iron Mountain Mining Ltd (ASX:IRM) has discovered extensive high grade, low levels of silica bauxite deposits from augur drilling in the Temotu Province of the Solomon Islands.
The first phase drilling and pit sampling returned lab results of 41.21% alumina (Al2O3) and 1.7% reactive silica (SiO2).
Should the tonnages be there, Iron Mountain has Direct Shipping Ore (DSO) potential, given the potential low cost of mining and proximity to markets.
With an eye to the potential scale of the deposit, the main target area presently defined by work to date is 12 kilometres by 2 kilometres and is still open to the east.
Interestingly, many of the samples included in this first batch of submitted lab samples are from areas now considered of lower prospectivity.
The deposit exhibits average depths of +3 metres, with some areas exceeding 6 metres.
Results to date indicate the tenor of alumina content is fairly consistent, with little variation throughout the soil profile.
Iron Mountain has the option to acquire a 50% interest in Au Capital Mining Pty Ltd, which owns the Nendo Bauxite Project prospecting licence.
Iron Mountain had a cash balance of $1.5 million as at 31 March 2016.
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