IOH 0.00% 70.0¢ iron ore holdings limited

fmg major upgrade next door to iron valley

  1. 2,984 Posts.
    FMG have announced that their holding next door to Iron Valley & the same deposit that flows from one to the other has been significantly upgraded:

    ? Total resources at Nyidinghu exceed 2 billion tones (bt), additional new resources totaling 980 million tonnes (mt) delineated with an expected life of mine strip ratio less than 2:1.

    ? Reinforces the importance and urgency of our studies on the options for the
    development of our next 100 million tonnes per annum (mtpa) capacity beyond 155mtpa.
    Fortescue Metals Group Ltd (ASX: FMG, Fortescue) advises that continued drilling at the Nyidinghu ore body has increased the Company's total resource inventory to 11.42bt through the delineation of additional new resources at Nyidinghu.
    The Nyidinghu project is only 35 kilometres south of Fortescue’s existing Cloudbreak operation in the Chichester Hub. Additional drilling completed at Nyidinghu since the original resource announcement in February this year has resulted in the Inferred Resources increasing to 2.01bt, up from 1.03bt in February. A cut-off grade of 52% Fe has been applied. There are three ore types present. The majority of the resource is bedded iron ore hosted within the Brockman Iron Formation totaling 68 per cent of the resource with a lesser quantity of Channel Iron Deposit (CID) at 29 per cent of total and a minor amount being three per cent of detrital ore (DID). Further details are given in
    the attached Appendix.
    Within the deposit there are coherent higher grade zones of bedded ore. In order to better understand the deposit a cut-off grade of 59% Fe was applied to the bedded portion of the ore deposit giving an Inferred Resource of 600mt at an average grade of 60.4% Fe, 3.26% SiO2, 2.35% Al2O3, 0.159% P and 7.19% LOI has been estimated.
    This 2.01bt resource is contained within an area of about 14 square kilometres.
    Mineralised thicknesses are substantial at up to 220m with overburden ranging from 0 to 80 metres. It is expected that the strip ratio will be less than 2:1.
    The Nyidinghu resource delivers Fortescue the potential to blend the higher
    phosphorus bedded Nyidinghu mineralization with its low phosphorus ores from the Chichester Hub to create a valuable product which Fortescue expects will be readily accepted by the market.
    There is considerable potential for low cost processing to upgrade the various
    mineralisation types at Nyidinghu. Fortescue has drilled about 75 diamond drill holes at Nyidinghu and the core is being used in metallurgical test work to identify the optimum process flow sheet for each mineralization type.
    Continued drilling to increase the resource size and category may ultimately add a further 400 to 500 mt to the resource. It is expected that the Company may be in a position to announce Indicated Resources late in the first quarter of calendar year 2012."
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