Perth, Sep 3, 2008 AEST (ABN Newswire) - International iron ore company Sundance Resources Limited (ASX:SDL)(PINK:SUDCF) is pleased to announce a further increase in the JORC-Code compliant Inferred Mineral Resource of DSO quality hematite to 222.6 million tonnes at an average grade of 61.6% Fe at its 90%-owned Mbalam Iron Ore Project in Cameroon, West Africa.
The updated DSO Mineral Resource inventory for the Mbarga and Mbarga South Deposits is summarised below. The update, which increases both tonnage and Fe grade compared with the previous resource announced on 21 July 2008, is based on assay data received from a total of 224 holes, including 20 diamond core holes, for a total of 47,700 metres drilled.
----------------------------------------------Deposit Million Fe SiO2 A12O3 P LOI Tonnes (%) (%) (%) (%) (%)----------------------------------------------Mbarga 198.3 61.9 9.1 2.7 0.08 2.0Mbarga South 24.3 58.8 9.4 3.0 0.06 2.9TOTAL 222.6 61.6 9.2 2.7 0.08 2.1----------------------------------------------
Note: Classification of resources is based on, and meets, the JORC Code (2004) standards of resource classification. Resources have been classified as Inferred based on a drilling density of 100 to 200m along strike and 100m across strike of mineralisation. Resource estimation has been carried out using Ordinary Kriging methodology using an assigned density value of 4.0t/m3 and a cut-off value of 50% Fe
The latest mine pit modelling of the Mbarga Deposit has confirmed the low strip ratio for the DSO resource (approximately 0.2:1) with over 95% of the DSO resource included within the modelled mine pit shell. The Company‟s Exploration Target for DSO quality hematite at the Mbalam Project is 300 million tonnes. Sundance‟s exploration team has identified three priority targets with the potential to deliver the additional tonnages required meet this objective, namely:
- Metzimevin Prospect - Drilling commenced in August 2008. The United Nations Development Program (UNDP) previously reported a non-JORC-Code compliant tonnage estimate of up to 35 million tonnes of +60% Fe hematite for this prospect based on drilling within outcrop of hematite extending over a 600 metre strike length.
To date, the Company has completed four Reverse Circulation (RC) drill holes at the eastern end of the Metzimevin Prospect with supergene material intersected in each hole at up to 40 metres drill depth from surface. No assay data are yet available from this drilling. The Company has defined an Exploration Target of 20 to 40 million tonnes of high Fe grade mineralisation for the Metzimevin Prospect.
- Western Flank of the Mbarga Deposit - Drilling has continued throughout August to test high Fe grade hematite mineralisation identified at depth in July this year. The Company has previously announced an Exploration Target of 40 to 60 million tonnes hematite grading 55-60% Fe within this zone of the Mbarga Deposit. The most significant intersection reported from recent drilling in this area is from diamond drill hole 114D which included 122m at 62.15% Fe from surface and 25m at 61.5% Fe from 150m.
- Meridional Prospect - Recent exploration mapping has identified new outcrop of +60% Fe material (based on handheld Niton XRF analysis of selected outcrop samples). Access is currently being established to the Meridional Prospect, with drilling expected to commence early next year.
Commenting on the announcement, Sundance‟s CEO, Don Lewis, said: "The increase in our JORC-Code compliant Mineral Resource inventory to 223 million tonnes of DSO quality hematite marks the third successive upgrade in our DSO resources at Mbalam since our first announcement this year of an Exploration Target of 80 to 140 million tonnes of DSO at the Mbarga Deposit. "This upgrade represents another significant step in our broader development plan for the Mbalam Iron Ore Project, where exploration is continuing to build the DSO resources required for start-up operations. Our immediate objective of defining 300 million tonnes of DSO quality resources is now within sight," he said. "The Mbarga Deposit, which is the first prospect within EP92 which has been drill tested to any extent in our exploration program to date, is a world-scale asset with Inferred Resources of 223 million tonnes of DSO quality hematite and 1,200 million tonnes of itabirite hematite already confirmed," Mr Lewis continued. "The additional exploration targets identified at Mbarga and at the Metzimevin and Meridional prospects reinforce our expectation to further increase the tonnage of both DSO and itabirite mineralisation on EP92. We will shortly provide an update on latest drilling results for the Mbarga itabirite."
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