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This project is also part of the Sinosteel Midwest Joint Venture agreement.
This project area is located at the historical Koolanooka mine site approximately 200km by road east of Geraldton in the Mid West Region of Western Australia. The Koolanooka project is situated 20km east of the Morawa Townsite.
Magnetite deposits in this region are located within massive Archaean-aged banded iron formations (BIF). The current mineral resource estimate for the Koolanooka Magnetite Studies Project is 430mt @ 35% Fe.
The initial scoping study for this joint venture Studies Project concluded that it had the potential to be viable at product levels in excess of 6mt per annum of blast furnace grade pellets. The company's board has resolved that magnetite resources will be developed when market demands and the company's financial position can support the major capital investment required.
The timing of a detailed assessment of the magnetite resource at this project will be largely determined by the development of the Weld Range hematite resource.
A Native Vegetation Clearing Permit has been submitted ahead of proposed exploratory diamond drilling programmes targeting southerly extensions of the existing Koolanooka magnetite resource, scheduled for 2008.
The target BIF at Koolanooka is located between a sedimentary hanging wall unit and a dolerite footwall unit. The deposit is located within a regional synclinal structure that may ultimately control the final depth of the mineralised horizon at the project. |
