Explorer Southern Uranium Ltd says it has identified substantial iron ore potential at its Jungle Dam prospect in South Australia.
Shares in the uranium, copper and gold focussed company jumped sharply after the announcement that it had reassessed prior drilling undertaken at the prospect, on the Eyre Peninsula.
Jungle Dam was drilled by the metals division of Shell in 1985 and Acacia Resources Ltd in 1996.
Southern Uranium did its own targeted drilling at the site in 2008 and 2009.
"Of a total of nine Acacia and Southern Uranium holes with complete assays and considered to be proximal to modelled magnetic bodies, six achieved iron intersections of significant width and grades of more than 30 per cent Fe (iron)," the company said.
"The potential for substantial thicknesses of iron mineralisation is indicated by broad or adjacent intersections at the original Jungle Dam prospect," it said.
It said the type of drilling undertaken by Shell was largely ineffective in penetrating to the find.
At 1354 AEDT on Wednesday, shares in Southern Uranium were up 1.3 cents, or 16.25 per cent, at 9.3 cents.
