Western Desert Resources starts drilling at Roper Bar project
Thursday, 02 Jul 2009
Proactive Investors reported that investors will be watching keenly for news from Western Desert Resources as drilling has kicked off at the Roper Bar Iron Ore Project in the Northern Territory.
Investors may recall the project is a JV with ITOCHU subsidiary, IMEA Exploration and Development of Australia Private Limited.
Itochu liked the potential of the project it agreed to farm-in to the project and for IEDA to spend up to AUD 15.0 million over the next 6 years to earn up to a maximum 51% equity in the project, in addition to the initial AUD 2.0 million acquisitions.
As an important cue for investors, the reverse circulation drilling program of up to 16,000 meters has been fast tracked with Itochu electing to proceed with the next phase of the farmin, months before a formal decision was due.
Drilling will be devoted to previously mapped high grade outcropping targets with the objective of evolving an initial resource estimate within coming months. These high grade drill targets are in Area D, Area E and Area F and were identified from a recently completed geological mapping program conducted during March 2009 extending the known area of outcropping iron mineralization to 55 square kilometers some of which yielded surface samples assaying over 60% Fe.
Mr Norm Gardner MD of Western Desert said that he was delighted that Itochu continues to demonstrate its confidence in the Roper Bar project and we look forward to a successful drilling program in this exciting emerging iron ore project.
The Roper Bar project is only 30 kilometers west of the Gulf of Carpentaria and just 240 kilometers east of the Alice Springs to Darwin rail corridor.
Phase-1 Drilling program completed in 2008 recorded assay results of up to 60% Fe and an average thickness of 5.7 meters under light cover. Also recent beneficiation test work successfully upgraded lower grade material to in excess of 60% Fe using a low cost gravity separation technique supporting the business model of the Roper Bar Iron Ore Project.
