Major iron ore target identified

26 November 2007 | 03:35 Code : 16007 Geoscience events
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A new Pilbara iron ore target of between 325 million tonnes and 390 million....

  A new Pilbara iron ore target of between 325 million tonnes and 390 million tonnes, averaging 56 percent iron has been identified close to the massive one billion tonne inferred resource estimate announced last week by Fortescue Metals Group.Flinders Diamonds, which is already entitled to royalty payments from the development of iron ore deposits on joint venture areas, said the new iron ore target had been outlined following an independent review of its Hamersley tenement E47/882.Flinders Diamonds wholly-owned 47/882 tenement adjoins the Fortescue-Flinders joint venture tenement E47/1306, which formed part of the new 1 billion tonne-plus inferred iron ore resource discovered by Fortescue in the central Pilbara.Flinders said it had been advised by Fortescue that it had discovered an inferred resource of 220 million tonnes of iron ore averaging 56 percent iron on the E47/1306 JV tenement as part of the one billion tonne discovery.Flinders Diamonds Managing Director, Dr Kevin Wills said the company’s awareness of Fortescue’s ongoing central Pilbara activity had prompted the company to commission its own independent study of its E47/882 licence area over the past five months.“The upshot of that independent review of our own Pilbara ground has outlined the large 325 to 390 million tonnes target, which, if confirmed by drilling, would provide a company-making project for Flinders Diamonds,” Dr Wills said.“Flinders Diamonds is currently undertaking a review of the options available to it with respect to future exploration and corporate activities at the Hamersley Licence E47/882,” he said.Dr Wills said that although based on the best available local experience, the new E47/882 exploration target of 325 to 390 million tonnes of iron ore is conceptual in nature and there has been insufficient exploration carried out to estimate a Mineral Resource.“It is also therefore uncertain whether further exploration will result in a larger, smaller or any Mineral Resource,” he said.The emergence of the iron ore target is a totally new play for Flinders, which has in recent years floated off its gold and base metals interests into a separate company.

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