Tuesday, 08 Nov 2011
FairStar Resources announced that it has entered into an agreement with Renaissance WA Pty Ltd to acquire the iron ore rights to a highly prospective 108 square kilometres tenement north-east of Steeple Hill Iron Ore Project.
Under the agreement FairStar will meet three years exploration expenditure for a total AUD 120,000 and pay a AUD 0.50 per tonne royalty on iron ore derived from this tenement.
The Mining Lease is to be held by FairStar and there will be a Royalty Agreement with Renaissance WA Pty Ltd, a wholly owned subsidiary of Renaissance Minerals Limited .
SHIP’s current indicated resource stands at 19 million tonnes of hematite. This recovery is for the +0.6mm fraction only, and additional hematite recovery will be obtained from the -0.6mm fraction, and preliminary test work indicates this could be in the order of an extra 4% hematite. Thereby providing for a total of at least 24 million tonnes of hematite.
Significantly, aerial photography indicates SHIP’s hematite rich gravels continue for up to seven kilometres into the new tenement, known as North SHIP.
The possible extension of SHIP’s hematite rich mineralisation into North SHIP means it could significantly boost SHIP’s present indicated resource.
Mr Kevin Robertson MD of FairStar said that “This is an exciting development with considerable upside potential for the company that could substantially increase FairStar’s iron ore resource and we will commence exploration drilling as soon as practically possible.”
The tenement in Western Australia’s Yilgarn region is a continuation of SHIP hematite rich alluvial gravels and has potential to augment the SHIP resource. The company plans to commence drilling shortly.
(sourced proactiveinvestors)
FairStar Resources announced that it has entered into an agreement with Renaissance WA Pty Ltd to acquire the iron ore rights to a highly prospective 108 square kilometres tenement north-east of Steeple Hill Iron Ore Project.
Under the agreement FairStar will meet three years exploration expenditure for a total AUD 120,000 and pay a AUD 0.50 per tonne royalty on iron ore derived from this tenement.
The Mining Lease is to be held by FairStar and there will be a Royalty Agreement with Renaissance WA Pty Ltd, a wholly owned subsidiary of Renaissance Minerals Limited .
SHIP’s current indicated resource stands at 19 million tonnes of hematite. This recovery is for the +0.6mm fraction only, and additional hematite recovery will be obtained from the -0.6mm fraction, and preliminary test work indicates this could be in the order of an extra 4% hematite. Thereby providing for a total of at least 24 million tonnes of hematite.
Significantly, aerial photography indicates SHIP’s hematite rich gravels continue for up to seven kilometres into the new tenement, known as North SHIP.
The possible extension of SHIP’s hematite rich mineralisation into North SHIP means it could significantly boost SHIP’s present indicated resource.
Mr Kevin Robertson MD of FairStar said that “This is an exciting development with considerable upside potential for the company that could substantially increase FairStar’s iron ore resource and we will commence exploration drilling as soon as practically possible.”
The tenement in Western Australia’s Yilgarn region is a continuation of SHIP hematite rich alluvial gravels and has potential to augment the SHIP resource. The company plans to commence drilling shortly.
(sourced proactiveinvestors)
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