WPG Resources has defined a highly anticipated maiden resource of 689 million tonnes at 30.9% iron for its Giffen Well project in South Australia, one of the highest grade BIF iron ore deposits in Australia.

Importantly, over 62% of the tonnage, or about 427.6 million tonnes at 31.17%, is classified as Indicated resources.

The resource also exceeds that at the nearby Hawks Nest project that it had sold to OneSteel Limited in late 2011.

The resource estimate is based on the results of WPG’s recently completed 16 hole reverse circulation and diamond drilling program and previous drilling carried out by the South Australian Department of Minerals and Energy in the mid-1990’s.

The 13 holes drilled by the company on the main BIF mineralisation had all intersected geology consistent with expectations, indicating continuity of the steeply dipping main BIF mineralisation over more than 3 kilometres of strike length.

Further work by WPG at Giffen Well is dependent on the results of the Pre Feasibility Study currently being undertaken and other commercial considerations.

Source - Proactive Investors
(www.steelguru.com)