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Fe Limited buoyed by Sandfire’s broad high-grade gold results at Morck Well JV

The encouraging results follow FEL’s sale last week of a non-core iron ore royalty for $7 million cash.

Fe Limited - Fe Limited buoyed by Sandfire’s broad high-grade gold results at Morck Well JV
Results include 10 metres at 3.55 g/t from 45 metres and 10 metres at 1.41 g/t from 75 metres

Fe Limited (ASX:FEL) is highly encouraged by the broad high-grade gold results returned by Sandfire Resources Limited (ASX:SFR) from the Morck Well Joint Venture with Auris Minerals Limited (ASX:AUR).

Results from regional aircore drilling by Sandfire include 10 metres at 3.55 g/t gold from 45 metres and 5 metres at 0.88 g/t from 70 metres in one hole and 10 metres at 1.41 g/t from 75 metres in another.

The results extend a zone of mineralisation identified by regional aircore drilling in 2018 which intersected 5 metres at 1.63 g/t from 70 metres.

Results support follow-up drilling

These new results strongly support follow-up drilling including more closely spaced aircore at 100 x 400-metres and deeper reverse circulation drilling testing the intersections received at depth.

FEL and Auris entered a farm-in agreement with Sandfire, which has considerable interests in the broader region, in relation to the Morck Well project during February 2018.

Sandfire farm-in

Sandfire has the right to earn a 70% interest in the project upon completion of a feasibility study on a discovery of not less than 50,000 tonnes of contained copper or metal equivalent.

Regional aircore recommenced within the Morck Well JV, which is about 30 kilometres southwest of  Sandfire’s Degrussa copper-gold mine on March 1, 2020, with a total of 135 holes for 11,627 metres.

The first-pass, 100 x 800-metre spaced program, is designed to provide initial bottom-of-hole geochemistry samples and assist in defining the interpreted stratigraphic sequence.

Other strong results are 5 metres at 1.46 g/t from 45 metres and 2 metres at 1.03 g/t from 85 metres.

The best results have been returned from five adjacent aircore drill holes on a single line of drilling, which highlight an anomalous width of 400 metres to the mineralisation.

Further results pending

Results are pending for aircore drilling completed on drill lines, 800 metres to the southwest and northeast.

Further exploration along this corridor will be aided by reviewing the comprehensive geophysical datasets that Sandfire Resources has at hand.

Sale of iron ore royalty

The encouraging results for Fe Ltd follow the company last week monetising its non-core Evanston royalty interest over a portion of the Koolyanobbing Iron Ore Mine in Western Australia for $7 million.

This sale to TRR Services Australia Pty Ltd, a subsidiary of Trident Resources PLC (LSE:TRR), enables FEL to focus exploration on key focus areas, including copper-gold in the Pilbara region of WA.

Chairman Tony Sage said while the royalty had provided useful recent cash flow it was not FEL’s main undertaking and its quantum was never certain.

“Monetising it makes it much easier for us to plan our exploration programs on the company’s key focus areas knowing we have the cash in place.

“We have a large tenement holding in the Pilbara, which is prospective for multiple commodities, so we look forward to continuing to actively explore that including follow-up works to the recent drilling conducted at Hillside.”

Quick facts: Fe Limited

Price: 0.013 AUD

ASX:FEL
Market: ASX
Market Cap: $6.35 m
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