Shree Minerals high grade iron hits boost DSO potential at Nelson Bay River

Tuesday, 14 Jun 2011

Shree Minerals has intersected high grade iron with low impurities from drilling at the Nelson Bay River iron project in northwest Tasmania extending the presence of goethitic hematite to a greater extent than expected.

Results provide partial resource delineation and extend the goethitic-hematite across the strike. Also, the depth of the proposed Direct Shipping Ore pit has been extended to almost 60 metres.

The high grade intersections range from 60.23% iron (Fe) to 65.14% Fe with less than 1% aluminium oxide (Al2O3).

Highlights include
1. 11 metres at 65.26% CaFe, 61.91% iron, 5.03% silicon dioxide, 0.98% aluminium oxide, 0.0662% phosphorus and 0.02% sulphur from 13 metres
2. 10 metres at 64.95% CaFe, 60.78% iron, 5.3% silicon dioxide, 0.92% aluminium oxide, 0.0719% phosphorus and 0.02% sulphur from 23 metres.

The drill campaign at the project concluded early last month with 32 drill holes covering 1,542 metres that included 23 reverse circulation drill holes covering 1,259 metres for resource delineation and six RC holes covering 210 metres for hydrological studies.

Shree holds two licenses at Nelson Bay River, one covering 50 square kilometres and the other covering 43 square kilometres. Importantly, both tenements have access via surfaced road.

Shree initiated metallurgical test work on the PQ diamond drill cores testing for Beneficiable Feed Ore on 27 May. The company has received assays from the laboratory for 11 holes out of a total of 23 reverse circulation holes and expects to receive the remaining assays over the next few weeks.

Shree Minerals’ recently defined high-grade iron ore hematite DSO resource at Nelson Bay will add a near term and lucrative earnings profile to the company.(sourced proactiveinvestors)