It is reported that Centrex Metals has commenced an 8,000 meters diamond drilling program at the company's Bungalow Magnetite JV, located 9 kilometers north of Cowell on the east coast of the Eyre Peninsula in South Australia.
Bungalow Minbrie has the potential to support a long life 5 million tonnes per annum magnetite concentrate operation and is well funded and supported by JV partners Baotou Iron & Steel Co Limited.
The diamond drilling is designed to assess the entire 18 kilometers strike length of the Bungalow Minbrie deposit including the estimation of an Inferred Resource and provide core for metallurgical evaluation of the deposit. A total of 20 diamond drill holes were completed in 2008 which focused on the southern 6 kilometers of the deposit.
Mr Kevin Malaxos acting CEO of Centrex Metals said that this next phase of drilling will add a further 30 plus holes to the project and indicate the optimal area for the next phase of Resource definition drilling.
The Financial Close for the Bungalow JV was completed on June 18th 2010 and since this time a number of key milestones have been achieved to rapidly progress the Stage 1 Scoping Study including an 8,000 meters diamond drilling program commenced on August 1st 2010 to complement the previous 5,200 meters drilled in 2008 and 800 meters in 2007.
AMEC Minproc has commenced the metallurgical assessment, process engineering and plant design scoping studies. The DTR results from the previous drilling program indicate that a high grade magnetite concentrate product can be produced as summarized below. AMEC Minproc is a world wide engineering consulting group with significant magnetite project experience.
SRK Consulting has been awarded the magnetite Resource modeling and grade estimation for the project. The aim is to produce an Inferred Resource as per the JORC guidelines. In 2008 Golder Associates completed an Environmental Scoping Study for the project and no major environmental concerns were identified.
The Bungalow magnetite deposit has an exploration target of between 127 million tonnes and 417 million tonnes whereby the current drilling program aims to convert this to an Inferred Resource. A high resolution aero magnetic survey in 2002 was conducted over the southern Bungalow magnetite deposit which confirmed the extent of the magnetite BIF and provided a guide for sighting drill hole
The combined strike length of the Bungalow and Minbrie magnetite deposit is an extensive 18km’s whereby the unexplored 10.5 kilometers Minbrie portion of the deposit represents significant upside for the project.
The AUD 8 million budget for stage 1 now provides the opportunity for a broad assessment of the entire Bungalow Minbrie magnetite deposit with the aim of completing the scoping study in quarter 1 of 2011. The stage 2 pre feasibility phase of the project is scheduled to follow on from the successful completion of Stage 1.
(Sourced from www.proactiveinvestors.co.uk)
