Ferrex, the AIM-quoted iron ore and manganese development company in Africa, has signed a contract, on a part equity payment basis, to complete a minimum 1 200 m drilling programme at the Malelane iron ore project in South Africa.
The drilling programme, due to commence in July 2014, is aimed at increasing the current inferred resource of 139Mt at 37% Fe, which is only defined over 1.5km of a 14km BIF strike at Malelane.
“I am pleased to announce the commencement of the drilling programme at Malelane, which should see us increase the resource at this project where the previously completed Scoping Study showed positive economic results,” said Ferrex managing director Dave Reeves.
“This new exploration programme has been facilitated by the drilling contractor, who understands the tight capital markets in which we operate and suggested the proposed payment system. We aim to use this as the base case for potential co-operation with the contractor on our other iron ore and manganese projects in Africa to maximise shareholder value with the company’s available funds.
“The new drill campaign will be centred on an old ochre mine 6.5 km east of the previous drilling, where there is potential enrichment of the banded iron horizon. Results of the drilling will be used in on-going studies and to allow flexibility in the mining permit submission.”
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