The Company continues its progress towards developing the Beyondie Iron Project in to a world class magnetite iron project with the potential produce a high grade magnetite concentrate product. During the quarter it made significant exploration progress at the Project with the establishment of a new JORC Resource upgrade, a new Exploration Target in the drilled-out portion of the project, and a further Exploration target at the Project outside the drilled section.
The Beyondie Project now comprises
1. Inferred Mineral Resource - 561 million tonnes grading 27.5% Fe in tenement E52/1806
2. Exploration Target - 480 to 510 million tonnes grading 27.0 to 28.5% Fe in E52/1806
3. Exploration Target - 3.7 to 4.2 billion tonnes grading 27.0 to 28.5% Fe outside of E52/1806
2. Drilled JORC Inferred Resource in E52/1806
The new JORC-compliant Inferred Mineral Resource of 561 million tonnes, grading 27.5% Fe has low deleterious impurities of phosphorus, sulphur and aluminium and was confirmed from the results of three completed drill programs at the Beyondie Project which totaled 17,399 meters across 116 holes.
The Inferred Mineral Resource was reported without a Fe cut-off grade, however drilling results are remarkably consistent within the wide Beyondie Magnetite Schist units and a nominal 20% Fe was used to define the mineralized zones. The JORC Mineral Resource was estimated by Adelaide based independent geological group AMC Consultants Pty Ltd
3. Exploration Target in E52/1806
An additional Exploration Target was delineated in the drilled area in tenement E52/1806. AMC estimated the Exploration Target tonnage to be 480 to 510 million tonnes grading 27.0 to 28.5% Fe.
The interpretations that underpinned the Exploration Target tonnage and grade ranges were derived from drill hole data located on sections along strike from the Inferred Mineral Resource zone. The drilling in the region of the E52/1806 Exploration Target demonstrated the continued presence of the BMS units, and the available drillhole assay data also supported the presence of the BMS mineralization, however the holes were considered to be too widely spaced between section and of insufficient length on section to provide sufficient confidence in the geological interpretation to classify the mineralization as a Mineral Resource at this stage. The potential quantity and grade of the Exploration Target is therefore conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource.
4. Exploration Target outside E52/1806
The Exploration Target of 3.7 to 4.2 billion tonnes confirmed outside tenement E52/1806 was interpreted from aeromagnetic data and geological mapping, and the interpreted volumes were modelled and confirmed by AMC. The tenor of the magnetic response suggested that a similar grade may be present throughout the entire tenement areas of the project.
The volume of the Exploration Target magnetite mineralization was based on assumed depths approximating the depths identified in the drilled areas. The AMC supporting methodology confirmed the volumes for the BM Schist zones.
The potential quantity and grade of the Exploration Target is conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and at this stage it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource.
The upgraded Mineral Resource and Exploration Targets confirmed the large scale, world class potential of the Beyondie Project, and positioned the project as one of the most significant new magnetite iron projects in Australia.
5. JV with CMIC to develop Beyondie Project
On October 28th 2009, the Company announced that a Subscription and Option Agreement had been signed by Emergent and CMIC to proceed with the AUD 200 million 50:50 Beyondie Development Joint Venture and the share and option placement by CMIC in Emergent to achieve the commencement of mining operations with an initial targeted production of 3Mtpa of magnetite concentrate at the Beyondie Project.
CMIC also advised that the Joint Venture would seek additional funding over the initial AUD 200 million investments to achieve a proposed second stage of production of 8Mtpa of magnetite concentrate.
Shareholder approval has been granted for the Agreement and it is now subject to Foreign Investment Review Board approval and the Peoples Republic of China National Development and Reform Commission approval.
