JOHANNESBURG (miningweekly.com) – Mining and exploration company IMX Resources on Wednesday announced that it had confirmed the presence of hematite on its Mt Woods project leases, located near its operational Cairn Hill iron-ore mine, in South Australia.

The company recently tested two gravity anomalies identified by ground-based detailed gravity surveys at the Tomahawk Group area, of Mt Woods, through a four-hole reverse circulation drilling programme.

IMX said all the holes intersected magnetite partially altered to hematite, which was visually recognised in drill cuttings.

“While this mixed material is not suitable for direct shipping, the drilling has confirmed the alteration of magnetite to hematite on the Mt Woods tenements and that the geophysical techniques applied by the company can be used as effective search tools for direct-shipping hematite mineralisation,” the company explained.

“We are encouraged by the outcome of this work, which has confirmed the presence of hematite on the Mt Woods leases and verified our exploration model, including the application of ground-based gravity as an exploration technique,” IMX acting MD John Nitschke said.

In light of the successful application of these geophysical techniques, IMX would now focus on identifying other prospective areas within the Mt Woods project, with the aim of identifying shipping-grade material.

The upcoming work would also use geological filters such as structure, faults and granitic intrusives to better refine the geophysical targeting.

“Any direct-shipping hematite discovery has the potential to be developed relatively quickly and at a low cost using our existing mining and operational expertise at Cairn Hill and leveraging off our infrastructure access.

“In the continuing strong iron price environment, any new hematite discoveries would add significant value to the company’s iron-ore portfolio in South Australia,” Nitschke said.