polaris to ground zero

New projects are viable mines: Polaris

From Mining News today.


Wednesday, 28 February 2007

POLARIS Metals has reported first pass iron ore exploration results from its recently acquired Perrinvale and Ashburton projects in Western Australia, claiming that both prospects could be potential viable mining operations.



Polaris acquired both prospects from Heron in July last year for 30 million of its shares.

At the Ashburton project, consulting engineers Project Development and Management Services reported that the area has the potential to become a viable iron ore mining operation, thanks to its location and large-scale production potential, in the area of 10 million tonnes per annum over a 20-year mine life, Polaris said.

The scoping study assumed a detrital iron target potential in the range of 600Mt-1.2 billion tonnes, based on an estimate of the surficial gravel beds, which the company believes are 3-6m deep.

"At the 20% recovery indicated by Heron's earlier test work, the +1.00mm iron ore target potential could be inferred to be in the range [of] 120-240Mt," the company said.

"The Ashburton project has the potential to feature prominently in Polaris' iron ore strategic planning and the company's focus on near-term production."

The company will conduct mapping and sampling at the project, followed by Aboriginal heritage clearance surveys, before drilling and bulk sampling programs begin.

Meanwhile, results from initial rock chip sampling at the Perrinvale prospect over an area of 800m by 100m showed an average iron content of more than 60%, the company said.

"The mapping and sampling is continuing with the objective of defining targets for drilling at a later stage," Polaris said.

The company cited the area's links to key infrastructure at Menzies and Geraldton as increasing its viability for development.

Polaris is also beginning drilling programs its Goldsworthy prospect in the Pilbara next month.

Shares in Polaris fell 8% to 27c in late morning trading today