CZR Resources has received assays from the first 55 holes of a larger drill campaign that indicate the potential for a massive upgrade to direct shipping iron ore resources at its Robe Mesa project in the Pilbara. Resource increases are anticipated from extensive hits outside current resource blocks and from the lower ore horizon below existing pit designs.
The company said current drilling shows the lower pisolite ironstone, which was excluded from the preliminary feasibility study or “PFS”, is a more consistent and higher quality iron ore than the upper pisolite. This opens the door for a considerable resource increase within the existing pit design.
Consistent results in drill holes outside the existing PFS pit designs show the potential to extend the pit limits and further increase ore reserves. Drilling shows the mineralisation extends down to a maximum depth of 60 metres with a low strip ratio of 0.9.
The company said drilling intersected a thick, flat lying channel iron deposit from surface. Company analysis of the direct shipping ore shows the CZR Robe Mesa deposit is comparable to other well established Pilbara iron ore fines products that have been in production since the 1970s.
All 55 RC drill holes contained direct shipping iron ore or “DSO” that does not require further processing before sale. CZR said the assay grade was of exceptional continuity with low impurities and high calcining iron, the ore is ideal for sinter fines production. At a 53 per cent iron cut-off, 60 per cent calcined, the combined upper and lower pisolite ore units average 27m thick with a combined grade of 55.7 per cent iron, 62.4 per cent calcined, 6.2 per cent silicon dioxide and 2.8 per cent aluminium oxide. The company says the tenor of its ore is similar to Rio Tinto’s Robe Valley Fines, FMG’s Super Special Fines and Atlas Iron’s Atlas Fines.
It believes the results are highly significant as they pave the way for an increase in annual production tonnage and an extended mine life over that announced in the PFS. The drilling reduces the hole spacings from 100m to a 50m grid, giving CZR increased data and confidence in the grade distribution. This in turn enhances mine planning and product categorisation according to management.
The remaining assay results from holes in the southern area of the Robe Mesa project are still outstanding.
CZR has established an exploration camp at Robe Mesa and additional drill rigs have been secured to accelerate extensional drilling and metallurgical test work. RC drilling will shortly test water targets for the establishment of a mine production water bore field.
In the PFS CZR defined an 89.1 million tonne resource grading 53.7 per cent iron from mineralisation at Robe Mesa. After calcination, a form of processing, the resource grade is expected to lift to 60.2 per cent iron. Early drill results from the current programme indicate this grade could be enhanced say the company.
An updated mineral resource estimate for Robe Mesa is being developed by Snowden Optiro and is projected for completion in April this year.
The company believes there is significant scope to enhance the project economics and it is focused on expanding the PFS pit designs to grow the mine life and increase production rates to potentially 3mtpa.
According to CZR, a larger mining footprint will allow for new pit designs to extend deeper into the lower pisolite that were not included in the PFS estimates. The company believes the lower pisolite provides the best opportunity to grow the mining inventory at the deposit.
The release of a definitive feasibility study for Robe Mesa is planned for later in 2022.
CZR Resources Managing Director, Stefan Murphy said, “These results show Robe Mesa is emerging as a significant iron ore project based on shallow DSO with low impurities.”
With an updated mineral resource estimate due in April followed by a definitive feasibility study, the Robe Mesa project is pumping. CZR has its gaze firmly fixed on getting into production now and with iron ore prices still commanding handsome prices, now might be a good time.
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