Perth, Australia: IMX Resources Limited announces the discovery of significant new iron rich magnetite formations at the Axehead and Tomahawk North prospects within the Mt Woods Magnetite Project in South Australia. Six prospects were drilled, the results of which have increased the Mt Woods Project exploration target tonnage by 168Mt-214Mt. When combined with the existing Inferred Mineral Resource at Snaefell and a review of regional magnetics data and historical exploration drilling, the global exploration target tonnage now totals 1.5-1.8 billion tonnes. Twenty-five reverse circulation (‘RC’) holes, totalling 3,486m were drilled during October and November 2012, with all holes returning significant magnetite iron intersections from five prospects near the Tomahawk prospect, located 25 km south-east of the Company’s Cairn Hill mine in Coober Pedy, and Fitzgerald Dam which is located west of Cairn Hill. The magnetite-quartz formations were found to have relatively consistent iron grades across their full width, with the formations also displaying minimal weathering of the magnetite mineralisation.
The iron formations continue at depth, beyond all existing drilling and like the Tomahawk magnetite deposit the magnetite at Axehead and Tomahawk North is coarse-grained. Managing Director Neil Meadows commented, “These latest results have boosted our global exploration target for Mt Woods beyond one billion tonnes and confirms that the Mt Woods Project has significant resource upside, as we have only scratched the surface from an exploration perspective. IMX believes this project has excellent development potential, with the ability to produce high-grade, very coarse-grained magnetite concentrates that are in strong demand globally and are attracting premium prices from steel producers. IMX is working hard to find a development partner to realise this potential for shareholders.” IMX’s RC drilling at the Tomahawk group of prospects has shown higher average iron grades, minimal oxidation of magnetite and shallower overburden compared to the Snaefell deposit. The Company now plans to complete a program of Davis Tube Recovery analysis to indicate the iron content of magnetically separated concentrates generated from these samples primarily as these smaller, potentially higher yielding targets could represent opportunities in terms of resources to exploit on a smaller scale start-up project.