It is reported that Montezuma Mining Company Limited has negotiated an agreement with Independence Group NL to acquire their 90% of the iron ore rights over the Mt Padbury license.

The license contains approximately 23 strike kilometers of the banded iron and chert sediments that make up the Robinson Range.

Montezuma Mining Company said Independence would receive a royalty of USD 2/DMT of any iron ore successfully mined from within the license. The remaining 10% free carried interest in E52/1529 is held by a private company.

MZM said the sequence is known to host significant iron enrichment with sampling by previous workers highlighting elevated surface iron values in excess of 50% over significant strike lengths. It added that “In one occurrence, where surface sampling returned grades of 63% from high grade haematite mineralisation, there is a projected exploration target potential of 5 to 7 million tonnes of high grade haematite ore grading 60% to 65%.”

The company said that sampling at the location returned low levels of silica, phosphorous, sulphur and aluminium. “It should be noted that this potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the determination of a mineral resource.”

Montezuma Mining said the Mt Padbury license continues to be a major focus and the latest deal adds to the prospectively of the overall project area.