Diamond and metals exploration company Tsodilo Resources has initiated geochemical analysis for grade determination and geotechnical test work for rock mass rating evaluation for the preliminary economic assessment (PEA) of its Xaudum Iron Formation (XIF) project, in Botswana.
As part of the analysis and test work, 755 samples from ten drill holes within the XIF Block 2 area have been sent to laboratory testing, inspection, certification and verification solutions provider ALS Chemex, in South Africa, for analysis.
Further, 34 samples from seven drill holes representing the main XIF geological domains have been sent to the Department of Mining and Geological Engineering at the Botswana International University of Science and Technology for geotechnical laboratory test work.
"These results will be important to the technical evaluation and economic understanding of the project and will be included in the PEA.
"The iron-ore market is entering a new 'supercycle' based on improving fundamentals and a healthy market and has recently recorded the highest price on record.
"This encouraging market outlook, coupled with the gathering pace of the green steel revolution, means that we are confident that the PEA will bring strong added value to the company as we develop this project towards mining," comments Tsodilo chairperson and CEO James Bruchs.
TSX-V- and FSE-listed Tsodilo notes that metallurgical results show that the XIF magnetite product is expected to be a premium product containing 67% iron, which is preferable over lower-grade iron-ores.
These high-grade ores and products currently command larger price premiums over standard 62% iron ores, resulting in higher margins for suppliers of high-grade products.
Further to this, "cleaner" iron-ores with an iron content equal to or greater than 65% use less coal per unit of steel and, as such, produce lower emissions. The current global drive for lower-emission steel production results in steel producers dramatically increasing their demand for these high-grade green ores.
As this shift towards green steel and emissions reductions continues, the high-grade XIF is uniquely placed to meet this emerging market, states Tsodilo.