Gindalbie Metals Limited advise that it has commenced a Feasibility Study on development options for the Shine Iron Ore Deposit, part of its 100% owned Warriedar Project in Western Australia’s Mid West region, following the completion of a Mineral Resource estimate for the hematite mineralization. The Mineral Resource estimate has been classified and reported using the guidelines of the 2004 JORC Code.
The Shine Deposit, which is located approximately 40km north-east of the flagship Karara Iron Ore Project, has moved into feasibility mode and forms part of Gindalbie’s broader 100%-owned tenement portfolio in the Mid West region. This tenement package extends over an area of 1,900 sq km providing a strong pipeline of future growth opportunities for the Company.
Gindalbie recently completed the acquisition of a 40% minority interest in the Warriedar Project from Royal Resources Limited, consolidating 100% ownership of the Iron Ore Project.
The Mineral Resource estimate for the Shine Deposit was completed by Snowden Mining Industry Consultants (“Snowden”) based on successful drilling programs undertaken by Gindalbie over the past year. The Mineral Resource, reported above a 55% Fe cut-off grade, is set out below:
Shine Hematite Mineral Resource
| Tonnes | Fe% | SiO2% | SiO2% | AL2O3% | P% | LOI% |
| Indicated | 5.7 | 59.1 | 9.13 | 1.78 | 0.084 | 3.89 |
| Inferred | 1.7 | 57.8 | 10.69 | 1.13 | 0.074 | 4.31 |
| Total | 7.3 | 58.8 | 9.48 | 1.63 | 0.081 | 3.99 |
The Feasibility Study will examine all options to develop the Shine Deposit, with the objective of moving it into production as rapidly as possible. The Feasibility Study will include additional in-fill and sterilization drilling, examination of processing and transport options and consideration of potential off-take arrangements.
The extensive infrastructure being developed as part of the Karara Project provides the option to potentially truck Shine ore to Karara for transport to Geraldton via the Rail and Port solutions currently being implemented.
The Feasibility Study is expected to be completed around mid-2012.
Mr Tim Netscher MD of Gindalbie said the Shine Project resource estimate and Feasibility Study was a good example of the high quality business development opportunities being pursued by the Company outside of the Karara Project. Importantly, this is a 100 per cent owned project opportunity which could leverage off the high quality infrastructure network we are establishing at Karara.”
