-Royal Resources Limited - Maiden Iron Resource at Iron Peak.
ENP Newswire - 22 October 2012
Release date- 18102012 - Royal Resources Limited is delighted to announce a maiden JORC-compliant Resource at the Iron Peak Prospect of 315.7 Million Tonnes at 21.1%, which includes 213 Million Tonnes at 21.0% Fe at Indicated Category and an Inferred Resource of 101.4 Million Tonnes at 21.4% Fe.
The Iron Peak Prospect is approximately 3.5 km along strike to the east of Razorback Ridge Deposit and would be easily accessible to any mining infrastructure developed at Razorback.
This now increases the JORC-compliant Mineral Resources in the Razorback Ridge Area to 1,816 Million tonnes at 21.0% Fe. Contained within the Razorback Ridge and Iron Peak resource is a higher grade Inferred Resource of 308 Mt at 30.0% Fe using a 26% cut-off grade, including an Indicated Resource of 235 Mt at 30.3% Fe.
The resource was estimated by independent consultant Resource Geologist Mr Lynn Widenbar of Widenbar and Associates Pty Ltd. All data and geological interpretations were provided by Royal for review and audited by Mr Widenbar.
Mr Marcus Flis, Royal's Managing Director, commented, 'The final resource update for the Razorback Ridge area concludes our resource definition work in support of the pFS. The total resource for the area greatly exceeds the estimate Royal had calculated prior to drilling and bodes well for the exploration target potential for the rest of our exploration licences'.
The total Mineral Resources inventory for Royal's Braemar Iron Formation Prospects now stands at 2,493 Million Tonnes at 21.7 % Fe. The Mineral Resource estimate does not use an iron grade cut-off, as the mineralized zones are stratigraphically confined. Application of an iron grade cut-off of 26% Fe produces a global higher grade Mineral Resource of 480 Million Tonnes at 30 % Fe.
Razorback Ridge and Iron Peak Area
The Razorback Ridge, Razorback West and Iron Peak Prospects occur within the Red Dragon Project. The drilled zone covers an approximate 12 kilometres strike length of the Braemar Iron Formation within EL4267 and EL3927.
The completed program at Iron Peak included 5,298 metres RC and 1,200 metres of diamond drilling over several phases from June 2010 to June 2012. The Iron Peak Resource covers an approximately 2.2 km strike length on the eastern limb of a predominant fold in the area. Importantly, the resource remains open to the west, the east, and down dip.
Resource modelling sees good continuity across the three prospects, with minor faulting in the Razorback West area. The resource at Iron Peak has been calculated to a depth generally of 350m down dip and is based on a geological cut-off, rather than a grade cut-off. The Fe grade changes dramatically at the contacts of the deposit such that the choice between the two cut-off definitions is essentially immaterial to the resource tonnage.
Ancillary information supporting the Resource calculation
The Razorback Iron Deposit is hosted in the Neo-Proterozoic Braemar Iron Formation, a tillitic unit that is part of the Adelaidean Geosyncline sedimentary sequence. At Razorback Ridge, this formation forms the northern limb of the Pualco Anticline and dips around 42 to the north and outcrops along a prominent ridge. Dips steepen to the west and east at Razorback West and Interzone.
Iron Peak resource drilling is further east of Razorback Ridge and occurs along an eastern limb of a parasitic fold within the Braemar Iron Formation. Dips here vary from 40 near the hinge and 55 further along the fold limb.
The Braemar Iron Formation consists of a series of alternating bedded, tillitic, and interbedded magnetite units that represent cycles of glacial advances and retreats. Seven cycles or members, are recognised, with Members A, B, D and G being of mineable thickness from 10 to 120m.
The drilling at Iron Peak was undertaken on an approximate 100 x 400m grid, dictated by topography. Drill hole locations were recorded by DGPS. All drill holes were down hole logged with natural gamma, gamma-gamma density, and magnetic susceptibility probes to aid interpretation. Hole deviation was monitored by multi-shot down hole camera and a representative population probed with a gyroscopic tool for QA/QC purposes. Average RC and diamond hole length during Phase III drilling is 180 m and 335 m respectively.
RC drill samples were collected and composited at 2m intervals. The total sample was split using a ripple splitter down to an assay weight with the remainder stored for future work, if required. Diamond drill core was generally sampled at 1m intervals, with 1/4 core used for assaying and DTR, 1/2 used for metallurgy and 1/4 saved as reference.
Assaying was undertaken by ALS laboratories in Adelaide and Perth. Samples submitted included repeats, blanks, and industry standards as an extensive QA/QC programme to monitor sample preparation and assaying accuracy. Duplicate samples were submitted to an independent assay laboratory as umpire samples.
The specific gravity of the mineralization was determined by three methods: the down hole gamma-gamma density probe data, in-field weighing and normalisation to volume of diamond drill core, and laboratory measurements of diamond core submitted for assaying. Densities were determined for the three main ore types: bedded magnetite, tillite, and interbedded magnetite. The resource calculation used a weighted average specific gravity of 3.2g/cc.
Razorback Iron Project resource continues to grow
The resource estimation for the Razorback Ridge Area is now completed, with pit optimization work currently underway. While the drilling at the Ironback Hill (Pualco Project) is completed and an interim Inferred Resource of 677 Million Tonnes at 23.6% Fe was announce to the ASX on the 22nd May 2012, there still remains a great number of assays and interpretation pending.
Once this work has been completed, further resource estimation will take place, after which Royal anticipates an upgrade to the present Resource.
The Razorback Iron Ore Project is a very large magnetite deposit located 240km NNE of Adelaide, South Australia. It is owned 100% by Royal. The project has an exploration target size of 4,800 to 8,000 Million tonnes at grades of 18 to 45% Fe occurring in an infrastructure rich area that has access to nearby existing open user rail, port, power, gas, heavy engineering and dormitory towns.
The Razorback Project is divided into two sub-projects: the northern Red Dragon Project that covers the Razorback Ridge magnetite deposit, and the southern Pualco Project. Collectively, the two areas cover over 1,450 square kilometres of exploration tenement through either outright ownership (EL4267 and ELA313/10) or an exclusive option over the iron rights (EL3927 and EL3997). This area contains in excess of 110 strike kilometres of the host Braemar Iron Formation.
The project was acquired in November 2009 and by August 2010, a maiden, JORC compliant Inferred Resource was declared. The current resource centred at Razorback Ridge deposit now stands at 1,815 Million tonnes at 21.0% Fe, including 1,193 Million tonnes at 21.5% Fe in the Indicated Resource category. This resource includes a higher grade component of 308Mt at 30% Fe. There are sufficient resources to support the Pre-Feasibility Study that is currently underway.
In May 2012, a maiden, JORC compliant Inferred Resource of 677.2Mt at 23.6% Fe was announced for the Ironback Hill Prospect. Only 65% of the completed drilling programme was incorporated into that resource estimate. An expanded resource will be announced once all pending assays are received.
The Razorback mineralization style is a bedded magnetite. It is significantly softer than banded iron formation ores. As a result, this outcropping resource will be low cost to mine and beneficiate which, together with the available infrastructure, means a low capital cost compared to its peers. The ore produces a low contaminant, high iron content magnetite concentrate and is expected to be readily marketable at a premium to the reference haematite fines price.
Tony HeslopCompany SecretaryRoyal Resources LimitedTel: +61 8 9322 8542
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