Cerro Resources has released an initial inferred mineral resource for its Mount Philp Haematite Iron Prospect in the Mount Isa region of Queensland.
Cerro completed a detailed program of geologic mapping, surface rock-chip sampling and partial drill testing of Mount Philp to enable it to develop initial resource estimation.
Based on the program, Cerro has identified a resource of 25 million tonnes grading 36% iron and 45% silica. The deposit occurs as a single north-northeast trending iron-rich stratigraphic unit extending over 4 kilometres.
Drill density was sufficient to define the continuity and shape of the ironstone body, but insufficient to map short scale grade variations within the ironstone, hence the resource is classified as inferred.
Preliminary metallurgical testwork conducted in 2010 on samples from within the inferred resource model indicated the ability to produce a high grade, 68% iron product using the flotation method to remove silica.
This would allow Cerro to process all material within the resource, regardless of silica content and produce an iron ore grade product. In addition to its Mount Isa iron ore activities, Cerro has interests in two projects in Mexico, the Cerro dal Gallo gold-silver project, currently in development and the Namiquipa silver exploration project.
(Sourced from www.proactiveinvestors.com.au)