Drilling confirms Feral potential

  Red River Resources has taken a major step forward, with significant reverse circulation drilling results that point to substantial magnetite iron ore potential in banded iron formations found within the Feral Prospect, located in the highly prospective Mid West region of Western Australia.The company said that the best potential exists in the ‘Eastern Hydrothermal Lode,’ located on the eastern part of the Feral Syncline. The characteristics of the mineralised zone include a strike length of approximately 5,000m, true widths ranging between five and 60m, with a 1,300m-long zone averaging between 50m and 60m, average iron content of 39.4% Fe, and no apparent Fe enrichment in the oxidised zone, which averages approximately 50m in depth.The recent drilling program follows the successful completion of a rock chip sampling program at the Feral Prospect in May this year. The tenement, E70/227, is located 40km west of the Karara Magnetite Project and Mungada Hematite Project, which are currently being developed by Gindalbie Metals and Ansteel.Red River said that drill hole cuttings from the Eastern Lode System display a distinctive style of magnetite mineralisation that may be comparable to the Gindalbie/Ansteel Karara and Mungada Projects, which is of particular interest to the company.In November this year, Gindalbie announced that a zone (BH2) yielded a magnetite concentrate suitable for direct reduction feed and would therefore be able to attract a price premium. Red River said it is encouraged by this and will proceed to metallurgical evaluation of the magnetite mineralisation from the ‘Eastern Hydrothermal Lode’, with the evaluation to include Davis Tubing.Red River Resources Managing Director, John Karajas said the successful reverse circulation drilling campaign was another significant step in the delineation and rapid development of a potentially large-scale mining project.“These outstanding results are further evidence of the potential of the Feral Prospect to be a world class iron ore project, in close proximity to rail, port and other infrastructure,” Mr Karajas said.“We will now be looking to rapidly progress modelling and further resource definition in the early part of 2008,” he said.