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Ironclad Mining Limited (Ironclad) was established to accelerate the development of the exciting Wilcherry Hill iron ore deposits located 40 kilometres north of Kimba on South Australia’s Eyre Peninsula. The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70% Fe with very low impurity levels. In addition, metal recoveries of over 95% and mass recoveries of 50% and up to 75%, are significantly higher than for typical Australian banded iron formation (BIF) magnetite deposits.
The existing JORC resource of 44 million tonnes at an average grade of 36.4% Fe is hosted by 3 of 93 magnetic anomalies within the central tenement of Wilcherry Hill which has potential to host 300 – 600 million tonnes of similar mineralised material according to an independent review. Further similar targets lie in Ironclad’s tenements to the east and west of Wilcherry Hill and a drilling program of at least 35,000 metres is planned from September 2007 to better define and expand the current resources and test selected regional magnetic targets.
Ironclad is earning an 80% interest in the iron ore within the tenements held by Trafford Resources Limited through expenditure of $10 million over 2 years and has commenced a Pre-feasibility Study to evaluate the optimum production rate, product type and product transport options. The study, costing approximately $9 million, will be completed by late in the first quarter of 2008 and subject to results is expected to lead to a feasibility study with first production planned for mid 2010.
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Current data have defined a JORC compliant indicated and inferred resource of 44 Million tonnes with an average grade of 36.4% Iron (Fe) within three separate prospect areas.
Three of the 93 magnetic anomalies are considered to have sufficient drill coverage; with iron assays to estimate indicated and / or inferred resources in compliance with the requirements of the 2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (The JORC Code).
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The Wilcherry
Hill area is deeply weathered with oxidised material extending to depths of at
least 100 metres.
The iron bearing units are generally less weathered than the adjacent
sediments and granites and are visually distinctive, being black compared with
the cream coloured waste rock.
This contrast is expected to provide Wilcherry with
relatively low cost waste mining and facilitate selective mining of the ore
zones with little dilution or ore loss.
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A desktop study undertaken by Promet MiningEngineers found previous metallurgical results were very encouraging with good gradeconcentrates being produced at relatively coarse grinds and very low bond work and abrasion indices. Testing of thecrystalline magnetite has delivered greater than 95% metal recovery andup to 75% weight recovery, which is substantially higher than forconventional Australian banded iron formation magnetite deposits. Theconcentrate contains over 70% iron, has low levels of impurities and isexpected to be a premium product for steel-makers. |
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The products investigated in the Promet study were either a blast furnace grade (BF) or a direct
reduction grade (DR) concentrate – the former producing a 64% Fe
concentrate for export as sinter feed while the latter is a premium
product for pellet making for the direct reduction market.
The company will also investigate the economic potential of providing a
direct shipping (DS) product to the market during the current
Pre-feasibility Study (PFS)
During the study period the company intends to work closely with
potential customers to determine the best product or mix of products
and develop a sound basis for long term relationships.
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Ironclad Mining limited is
committed to the aspiration of zero harm and is establishing thorough, fit for
purpose health, safety, environment and community (HSEC) policies, systems and procedures
to ensure all activities are conducted in a sustainable manner.
Legal requirements will be the
minimum standard with leading practices adopted where practical.
Positive and constructive
relationships have been established with the local community and local and
State Government and a HSEC Manager is being appointed in Adelaide to ensure
sound systems are implemented, environmental approvals are progressed and stakeholder
relationships are optimised.
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Independent Geologist, Maprock Pty Ltd, indicates an exploration target potential of 300 to 600 Million tonnes iron rich magnetite bearing material down to a vertical depth beneath surface of 150 metres within the Wilcherry Hill tenements.
This potential includes extension
of the existing resources at Weednanna and Ultima Dam along with numerous
similar magnetite targets adjacent to the area and within the region.
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