Drilling Success At Carpentaria Exploration Limited (ASX:CAP) Burta Iron Ore Joint Venture, Broken Hill
Brisbane, June 28, 2010 AEST (ABN Newswire) - Carpentaria Exploration Limited (
ASX:CAP) announced today positive initial drilling results from its Burta Bonython Metals Group Pty Ltd (BMG) magnetite iron ore joint venture near Broken Hill, New South Wales (part of the Hawsons Iron Project).
The preliminary results are supportive of the Company's exploration target* interpretation, which is estimated at 2.2-4.8 billion tonnes at 18% - 20% magnetite DTR (Davis Tube Recoveries) with a concentrate grade of 69-71% Fe (iron) to a depth of 250 m over an estimated 34-51 km strike length. (*1 The potential quantity and grade of the exploration targets are conceptual in nature, and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource).
The Burta BMG JV (EL 7208 and 7504) cover a large portion of the Braemar Iron Formation, which is highly prospective for bulk magnetite iron deposits. Importantly, the magnetite occurs in a siltstone and is very soft, allowing for low-cost mining and crushing in a favourable location for infrastructure just 60 kilometres from Broken Hill.
Carpentaria's Executive Chairman, Nick Sheard, said the results were pleasing at this early stage in the Company's drilling program, with a total of approximately 4,000 m of drilling planned in the initial phase on this JV.
"Carpentaria has three drilling rigs currently operating at the Hawsons Iron Project as part of our record A$9 million exploration program planned this calendar year across seven projects in New South Wales.
Although we are awaiting the assay results, it is pleasing to return such good initial results consistent with our earlier drilling. This has further boosted our confidence in the prospect for a new magnetite iron ore province near Broken Hill," Mr Sheard said.
Drilling
The initial drilling program undertaken by Carpentaria on the Burta JV has confirmed new iron ore discoveries at multiple target areas. Apart from a historical third party drill hole, which was targeted on the margin of the Wonga Anomaly for possible copper mineralisation, no past drilling had occurred at the South Limb, Wonga or Dam Prospects. In total, 1802 m have been drilled on these targets in the current program, with a further 2000 m planned over the next four weeks.
Observations and field and laboratory magnetic susceptibility results (which correlate with the magnetite content) from the recent drilling, support the interpretation used to derive Carpentaria's exploration target1 (as announced to the ASX in the March Quarterly Activities Report on the April 30th, 2010).
The drilling has confirmed Carpentaria's interpretation of the aeromagnetic data and have identified:
- Four parallel magnetite ironstone units in the South Limb Prospect
- Magnetite ironstone at the Dam anomaly
- Thick sequence of magnetite ironstone at the Wonga anomaly.
Initial drilling at the South Limb Prospect has tested four units identified from the aeromagnetic data. The units all returned thick sequences of magnetite mineralisation based on field measurements of magnetic susceptibility and geological observations. These include:
- South Limb Unit 1, intersected in RC10HA004, returned over 70 m over magnetite ironstone
- South Limb Unit 2, intersected partly in RC10HA005, returned 20 m of magnetite ironstone at the bottom of hole
- South Limb Unit 3, intersected partly in RC10HA006 and 008, returned over 140 m of magnetite ironstone to bottom of hole
- South Limb Unit 4, intersected partly in RC10HA001, returned over 100 m of magnetite ironstone.
Drilling at the Dam Prospect has begun, and preliminary observations of drill chips confirm this so far untested magnetic anomaly is sourced by similar magnetite ironstone.
Similarly, initial drilling at the Wonga Prospect has intersected thick sequences of magnetite ironstone and diamond drilling is in progress.
Carpentaria is very encouraged by these initial field results and samples have been despatched for Davis Tube Recovery (DTR) analysis. Results are awaited.
Metallurgical Testing
The diamond drilling program at the Burta JV will enable further metallurgical test work to commence using diamond drill core. The test work will provide information for the scoping of the design of a crushing and grinding circuit for the Project. The key factors to be assessed at this stage of the project progression include:
- Crushing and grinding work indices
- Mineral liberation characteristics
- Comparison of High Pressure Grinding Rolls (HPGR) to conventional autogenous milling.
The energy requirement for crushing and grinding is usually the largest operating cost item for magnetite concentrating operations. Initial test work has indicated that Hawsons iron ore is soft and less energy will be required to liberate the magnetite than other comparable magnetite deposits in Australia. The metallurgical test work on the diamond drill core will provide preliminary estimates of the energy requirements to feed into the Project scoping studies.
The recent diamond drill core and RC samples show consistent grain sizes across the deposit. The high grade magnetite core sample photographed provides visual confirmation that the magnetite has a consistent grain size coarser than 38 microns.
Mr Sheard said Carpentaria was quickly progressing the Hawsons Iron Project towards pre-feasibility study status, potentially by early 2011.
"We will shortly be receiving the metallurgical results, which will assist in the development of our scoping and pre-feasibility studies for the project," he said.
"Once this phase of work has finished, we will start drilling out a resource using four rigs, pending Government approvals. This is a very exciting time for Carpentaria and our joint venture partners, as we continue exploration development in the world-class Broken Hill mineral province.
"Carpentaria's aggressive exploration program across a range of commodities and regions is rapidly expanding our project pipeline, which already includes Hawsons and the Euriowie tin discoveries. We are focused on making the progression from minerals explorer to mid-tier mining house and growing shareholder value."
For the complete Carpentaria Exploration Limited announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/63182-ASX-CAP-221607.pdf
About Carpentaria Resources Ltd
Carpentaria Resources Ltd (ASX:CAP) is focussed on delivering the best quality iron concentrates into the growing premium end of the iron ore market.
The Company aims to build a long term, low cost premium quality iron ore business from the development of its flagship asset, the Hawsons Iron Project, utilising existing infrastructure.
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