Latin Resources (ASX:LRS) has identified encouraging itabiritic iron ore targets in four of the seven exploration blocks at its Borborema Iron Ore Project in Brazil.
Notably, analysis of 10 rock chip samples returned iron ore grades of between 28% and 41%.
Borborema is located in Rio Grande do Norte State between the Bonito mine owned by MHAG and the Saquinho Mine operated by India's Zamin Resources - the latter mine is producing 5 million tonnes of banded iron formations (BIF), locally called itabirite.
“We are very pleased to have encountered such promise from our initial exploration activities in Brazil,” managing director Chris Gale said.
“These results support the company’s strategy to develop iron ore projects close to port and infrastructure with potential for near term production.”
Further work is now being considered for the tenements including the reinterpretation of airborne magnetic data, ground magnetic and gravity surveys, detailed geological mapping, rock chip sampling and trenching.
The itabiritic iron ore targets were identified through field geological reconnaissance work undertaken since December 2013.
These are metamorphosed and highly deformed rocks comprising mostly quartz and iron oxides that are hosted by amphibolites and mafic schists.
Samples were taken the four blocks returned grades of between 28% and 41% iron that would upgrade to a premium pellet feed product with low levels of contaminants.
The iron ore bodies are structurally controlled, exhibiting cylindrical shapes with dips varying from 10 - 50 degrees.
The ore body’s range in thickness from between 5 metres to 20 metres with lateral continuity ranging from 0.1 kilometres to 6 kilometres.
The iron horizons are more continuous and thicker in Block IV, particularly in the tenement 848.375/2011, where expressive geological fold traces represent regions where the iron formations can significantly increase in their thickness and iron grades as commonly occurs in the Iron Quadrangle classical iron ore mines.
Borborema Iron Ore Project
Latin Resources had acquired the Borborema Iron Ore Project from Rio Tinto (ASX:RIO) in November 2013.
It is located about 150 kilometres from existing seaports while two new public rail-roads are due for construction that will pass the region and give access to two large ports.
The discovery of itabiritic iron ore targets with samples returning between 28% and 41% iron are a positive initial exploration result for Latin Resources at the Borborema project.
While Rio Tinto was likely looking for 5-10 billion tonnes of iron in a project, even a discovery of a couple of hundred million tonnes of iron ore would be valuable to Latin Resources.
It would also be enough to attract a partner looking for an entry point into the new iron ore district of Rio Grande do Norte State, Brazil.
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