Territory commits to $25m exploration program

Territory Resources has committed to spend $25m over the next two years with...

  Territory Resources has committed to spend $25m over the next two years with the aim of substantially expanding its high-grade resource base and extending mine life at the Frances Creek iron ore project.Territory Resources Chairman, Michael Kiernan said the company was focused on delivering a steady increase in production at Frances Creek, backed by substantial exploration of largely under-explored areas. “The immediate focus of exploration is the expansion of near-mine reserves and resources, including the areas adjacent to the known deposits,” Mr Kiernan said. “A budget of $12m, including in excess of 100,000m of reverse circulation drilling, has been approved for the 2008 calendar year, with three drilling rigs engaged to undertake the works. “The sustainability of exploration drilling during the wet season will be boosted by the introduction of a track mounted reverse circulation drilling rig later in the year,” he said. Frances Creek currently has 5mt of reserves @ 61.3% Fe, with indicated and inferred resources of 10.1mt @ 60.47% Fe. Mr Kiernan said Frances Creek has significant areas that have been largely unexplored by modern techniques, including 12-14km of strike, which will be targeted through the current program. The northern tenements at Frances Creek contain significant potential for further discovery. The tenements lie on the northern extension of the Frances Creek structure, and sporadic outcrops exist along the structure. “The style of mineralisation in the region tends to be under modest cover, and therefore has remained generally unexplored and undiscovered,” Mr Kiernan said. “Having taken Frances Creek into production, our aim has been to use cashflow to realise the significant production expansion opportunities. “Our strategy is to discover, dig and deliver as much as possible over the coming three years, capitalise on the strength in the iron ore market and develop future earning streams,” he said.