A maiden iron ore resource estimate of 476 million tonnes has been announced by Flinders Mines Limited for its 100% owned Hamersley project in Western Australia.
Flinders Mines Limited said that exploration drilling in the close vicinity scheduled from May is expected to rapidly add to that figure, targeting up to a further 260 million tonnes of the shallow iron ore deposit.
The JORC compliant Inferred Resource comprises 476 million tonnes of iron ore at a grade of 55.2% Fe, including priority zones of 124 million tonnes of iron ore grading above 58.3% Fe.
The independently assessed JORC compliant resource estimate was derived from a major drilling campaign across 4 of 5 key prospects on Flinders 100% owned E47/882 license an area sandwiched between Rio Tinto's new Caliwingina North iron ore discovery and Fortescue Metals Group Serenity iron ore project. The drill campaign comprised an extensive 300 hole, 15,000 meters program which confirmed the presence of extensive hematite dominant Channel Iron Deposits, as well as high grade goethite dominant Bedded Iron Deposits lying beneath the CID.
Mr Bob Kennedy chairman of Flinders Chairman said that "The resource estimate continues to underline the reputation of Western Australia's Pilbara region as the country's premier iron ore province."
Mr Kennedy said that "Secondly, the fact that the resource is of such high quality, so close to surface and so close to existing world class ore export infrastructure, delivers considerable project upside very early in the life of our development plans for the Hamersley."
Mr Kennedy said that "After an expenditure of USD 8 million and 8 months of exploration, we can finally confirm what we have always suspected that the Hamersley project contains an outstanding iron ore resource."
Flinders has commenced a scoping study to assess development options for the 112 square kilometers Hamersley project, leading into a Prefeasibility Study later this year and a Feasibility Study in 2010.
The JORC compliant Inferred Resource was prepared by independent geological consultancy, Golder Associates Private Limited, based upon data collated and interpreted by Flinders staff.
