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IOH declares maiden reserve at Bungaroo South

14th November 2012

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - ASX-listed Iron Ore Holdings (IOH) has announced an initial maiden ore reserve of 92.4-million tons, grading 57.6% iron, at its Bungaroo South deposit, which forms part of the Buckland project.

The ore reserve was based on an updated Joint Ore Reserves Committee mineral resource of 248-million tons, following an extensive drilling campaign in which 140 holes were drilled.

IOH said the new mineral resource estimate included some 180-million tons, at 58% iron, with relatively low silica and aluminium levels, compared with several other deposits in the region.

The initial ore reserve was targeted to support the first ten years of mining at Buckland, at a rate of some eight-million tons a year, with significant potential to increase the Buckland project ore reserve in the future.

Infill drilling was set to continue across the Bungaroo South deposit during the feasibility study, and was expected to deliver a further upgrade of the existing inferred mineral resources to the indicated status, which should, in turn, also support future increases to the ore reserve estimation.

MD Alwyn Vorster said on Wednesday that the mine study and ore reserve estimation were key components of the Buckland project’s prefeasibility study, which was due for completion within the next six weeks.

“IOH is confident that the results of the prefeasibility study will confirm the technical and economic viability of the Buckland project,” he added.

Edited by Creamer Media Reporter

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