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New block on iron play targeted

20th February 2015

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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Junior Toronto-listed miner Tsodilo Resources has moved into the next phase of its flagship Xaudum Iron Formation (XIF) project’s exploration programme targeting Block 2 of the resource.

The block is located to the south of Block 1 and is a larger area than Block 1, for which the company defined a large inferred mineral resource estimate in September 2014, Tsodilo president and COO Dr Mike de Wit tells Mining Weekly.

“As the reported resource for Block 1 of 441-million tons at 29.4% iron, the area covered by the associated drilling represents only a fraction of the total XIF magnetic signature, we believe that Block 1 represents only the tip of the iceberg in terms of XIF resource potential,” he highlights.

Tsodilo, therefore, expects Block 2 to contain a larger resource than Block 1 when fully drilled out.

“We are still in the early stages of this evaluation drilling, but initial indications are good for the quality in terms of grade and favourable mineralogy, as well as the potential resource size,” De Wit explains.

The miner has reported a conservative exploration target for the XIF of five-billion tons to seven-billion tons, with grades ranging from between 15% and 40% iron.

The company has used the ground magnetic- intensity signature and inversion model to locate areas of likely high-grade material and is drilling those as a priority, De Wit adds.

He notes that indications are good, as the company is realising the targeted high-grade zones through drilling Block 2. “In light of this, signs point to a significant increase in the delineated resource . . .”

De Wit further stresses the importance of establishing a resource that is large enough to plan for the next stage. “Tsodilo is investigating various options to beneficiate the magnetite product on site to produce a higher-grade iron product concentrate of well over 90%, which could be used in a local steel industry in future.”

He believes that the iron-ore project will have a significant impact on the Botswana mining industry, reiterating that the “sheer size of the deposit means that this could be mined for more than a century, which has the potential to replace the country’s reliance on diamonds”.

Tsodilo is in discussions with government about the infrastructure in Botswana, which will have a significant impact on this project. The development of a rail network is critical to develop the project into a large commercial entity and fast-track the iron-ore and associated local steel industry, he stresses.

“However, we are evaluating the possibility of local beneficiation, whereby the deposit is mined at a lower rate, but which will shorten the timeframe,” De Wit says.

The XIF project is a Neoproterozoic, banded magnetite iron-ore prospect in the northern portion of the Ngamiland region, in the North-West district of Botswana.

It is located within the PL386/2008 and PL387/2008 base metal prospecting licences and stretches over 37 km, with the surrounding area having good infrastructure in terms of road connections, water and telecommunications.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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