Cerro Resources has bumped up indicated and inferred resources at its wholly owned Mount Philp Haematite Iron Prospect in the Mount Isa, Queensland, to 30 million tonnes at 38.6% iron and 42% silica. This includes 17 million tonnes at 48.5% iron with 63% of the entire resource in the indicated category and comes after the company completed an exploration program consisting of 48 diamond and reverse circulation drill holes over a 4 kilometre strike, geologic mapping and surface rock chip sampling.

Cerro said the iron and silica distribution within the resource was consistent with the material used in the original metallurgical sighter test work and that no deleterious elements had been detected.

The original test had indicated the ability to produce a high grade, 68% iron product using the flotation method to remove silica, allowing Cerro to process all material within the resource and produce an iron ore grade material.

The upgrade is an improvement in both size and grade over Cerro’s initial inferred resource of 25 million tonnes at 36% iron.

In addition to its Mount Isa iron ore activities, Cerro has interests in two projects in Mexico, the Cerro dal Gallo gold-silver project, currently in development and the Namiquipa silver exploration project.

(Sourced from www.proactiveinvestors.com.au)