monster iron ore resource confirmed today, page-4

Giralia expands study framework


Monday, 26 July 2010

THE McPhee Creek deposit is shaping up as one of the largest direct shipping ore haematite plays within trucking distance of Port Hedland not held by a major, but this has not stopped its owner Giralia Resources from advancing scoping study work.

In fact, the junior is now expanding its scoping study framework to investigate off-highway road and rail haulage options.

The project is located 50 kilometres north of BC Iron/Fortescue Metals Groups Nullagine iron ore joint venture deposits and, based on drilling since December 2009, resources have been upgraded to 161.4 million tonnes grading 56.2% iron (62.1% calcined iron).

This compares to the previous estimate of 52.1Mt at 56% iron (61.7% calcined iron), based on a 50% iron cut-off grade.

It also comes in higher than Giralias previous exploration target for the deposit of between 100 and 140Mt.

The resource upgrade covers around 2.3km (up to 30%) of the strike length of the main range deposit at McPhee Creek, but to the north further hits such as 112m (to end of hole) of 57.7% iron have been returned.

The company expects to announce a further resource upgrade late next month, once all assays are received, and to this end has revised its exploration target upwards to 250-350Mt at grades of 56-60% iron.