Meteoric Resources (ASX: MEI) should soon move onto the radar with its Coorara Iron Project in Western Australia following recent iron ore exploration acitivity and positive scoping study results at Macarthur Minerals’ (TSXV: MMS) Lake Giles iron ore project.
Macarthur's Lake Giles project is situated immediately north along strike from Meteoric’s Coorara project. The former has a magnetite resource of; 1,316 million tonnes at 30.1% iron and hematite-goethite resources of 18 million tonnes at 55.5% iron.
This should provide plenty of encouragement for Meteoric given the scoping study indicated a significant net present value for the Lake Giles project of $2,525 million, based on a resource of 710 million tonnes at 30.6% iron.
With Meteoric commencing an initial reverse circulation drilling program to test the more readily accessible targets at Coorara and results from this drilling expected within in the next month, this should begin to forge an initial valuation base from which Meteoric can grow.
What is particularly interesting is that the banded iron formations (BIF) stratigraphy hosting the Lake Giles magnetite and hematite-goethite resources extends into the Coorara project.
There it can be traced for some 40 kilometres. Interpretation of aeromagnetic data indicate that the BIF sequence hosting the Moonshine deposits correlates with the Western BIF sequence identified by geological mapping within the Coorara tenement.
In fact, Moonshine and Moonshine North magnetite deposits at Lake Giles are situated just 5 kilometres north of Meteoric’s northern tenement boundary.
A program of mapping and sampling confirmed surface grades of more than 50% iron.
Coorara is also close to standard gauge rail giving access options to Esperance or Kwinana ports.
When you consider that Macarthur Minerals has a market capitalisation of $100 million and Meteoric Resources has a current market valuation of just $15 million, drill results and work in 2011 should start to lift the current miserly Meteoric valuation.