Maiden 1.5bt JORC resource announced by Sumitomo-Minotaur JV for Mutooroo magnetite iron project on SA-NSW border Thursday , 24 Nov 2011 Minotaur Exploration
A maiden JORC Inferred resource of 1.5 billion tonnes has been announced by the Japanese and Australian owners of the Mutooroo magnetite project west of Broken Hill and just inside South Australia's border with New South Wales.
The estimate comes as the project's joint venture partners, Minotaur Exploration Limited (ASX: "MEP" and 40.9%) and Japan's Sumitomo Metal Mining Oceania Pty Ltd (59.1%), also announced today they expect to complete Mutooroo's current scoping study early next year.
The JORC estimate, for the Muster Dam deposit, is within the Exploration Target1 of between 2.4 billion and 4.0 billion tonnes at Davis Tube Recovery (DTR)2 rates of between 14.5% and 16% Fe, calculated independently by consultants, Hellman and Schofield Pty Ltd and first announced by the Joint Venture in May this year.
Muster Dam is contained within a sequence of magnetite rich deposits which stretch almost 40 kilometres in length across EL 3745, part of the broader Braemar Iron Formation, a regionally extensive sequence of magnetised sedimentary siltstones
The resource milestone follows the completion by Minotaur, as joint venture Operator and Manager, of 49 Reverse Circulation holes for 13,031 metres, and 10 diamond holes for 2,883 metres, to a depth below surface of 300 metres, along a six kilometre length of the Muster Dam deposit at Mutooroo.
The JORC reported estimate comprises an Inferred resource of 1.5 billion tonnes at 15.2% Fe DTR magnetite at a nominal 10% DTR magnetite cut off, with a headgrade of 18.2% total Fe.
The mineralised sedimentary package contributing to the resource announced today has widths of between 200 and 400 metres.
Minotaur Managing Director, Mr Andrew Woskett, said today the resource for Mutooroo is directly comparable to Carpentaria Exploration's nearby Hawson's project, just 25 kilometres away.
"We are moving rapidly to completion of a Scoping Study and believe this is now very much an emerging asset," Mr Woskett said.
He said work had now commenced on preliminary design work to define an appropriate processing route for Mutooroo's mineralisation.
Ongoing test work continued to reinforce Minotaur's belief that Mutooroo has potential to produce magnetite concentrates containing high Fe (69.8%), acceptable silica and extremely low levels of deleterious elements.
Mutooroo is located on tenement EL 3745 and 100 km southwest of Broken Hill. Magnetite-bearing deposits have been identified at Muster Dam, Duffields, Peaked Hill and Surrender Dam prospects.
Magnetite iron currently accounts for about 50% of global iron ore production, but currently only 4% of Australian iron ore output, suggesting, Mr Woskett said, vast scope for domestic growth in the seaborne trade of magnetite iron.
He added that the efforts of the Federal Opposition, the Hon Tony Crook MP and the Hon Bob Katter MP in this week attempting to introduce an Exclusion Amendment in the House of Representatives to the new mining tax legislation, were very much appreciated.
"While unsuccessful, their efforts illustrated that some leaders are acutely aware of the negative impact that the MRRT could have on emerging magnetite developers," Mr Woskett said.
CAP Price at posting:
19.8¢ Sentiment: ST Buy Disclosure: Held
