Aurium Resources drilling confirms magnetite potential of Peak Hill JV
Monday, December 06, 2010 Aurium Resources (ASX: AGU) and joint venture partner Padbury Mining (ASX: PDY) have almost completed the evaluation drilling program at Peak Hill in Western Australia, which has demonstrated magnetite mineralisation is continuous over 4km strike length and 250 metres thickness.
The program has tested a 4km section of the 10km Telecom Hill exploration target area with new results from holes HRC61 HRC75 returning encouraging results including magnetite intercepts of 198m at 34.2% Fe, 40.7% silicon dioxide (SiO2), and 2.35% aluminium oxide (Al2O3).
A number of the holes in the northern area of the program have intersected magnetite in the oxidised near-surface zone (<30m), with intercepts such as 24m at 34.0% Fe, 37.7% SiO2, and 0.11% P from hole HRC062.
The drilling program was designed to assess the resource potential of approximately one third of the 1.5-2.0 billion tonne exploration target.
The program is targeting the western end of the Telecom Hill ridge, following-up the excellent results achieved in this area during drilling earlier in 2010.
The previous drilling intersected magnetite-bearing BIF within the Robinson Range Formation and achieved a best intercept of 168m at 27.8% Fe down hole from 84m depth.
The current program has re-entered several of the previous, shallow, holes in this area to better understand the distribution of magnetite and the location of the base of oxidation.
The drilling has only tested 4km of the potential 10km strike length indicating substantial upside exists to further expand the deposits.
The JV partners will undertake estimation work to determine the size and specification parameters of the deposit as soon as all the field data has been compiled and the analyses are received
To better define the resource potential of the BIF stratigraphy the JV partners have committed to the current RC drilling evaluation program and a number of additional studies aimed at delineating a maiden resource for the project early in 2011.
Aurium Resources drilling confirms magnetite potential of Peak Hill JV
AGU Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
