The Company is currently investigating alternative screening methods which could potentially upgrade the mineralisation at the Area 1 Prospect to economic levels.
During the December quarter the Company will evaluate all drilling results to date and complete metallurgical and density separation studies on RC samples from Area 1 to establish whether grades of mineralisation and tonnages can be improved
During the quarter Allied Mineral Services in Perth, Australia completed a preliminary heavy mineral analysis of samples from previous pitting and the auger test programme to determine the valuable heavy mineral (dollar inground potential) and deleterious mineral content of the heavy mineral suite. Results indicated that samples with a heavy mineral grade of 10-12% have higher magnetite and hematite levels than those normally seen in mineral sands deposits and have good potential for an iron ore deposit. There are however high levels of titanium in the coarse magnetite fraction. Testwork is being undertaken to establish whether economic quantities of magnetite with low Titanium content can be recovered from the dunes. Although the deposit typically has low levels of zircon and rutile, the zircon could possibly be recovered as an accessory mineral during a mining operation. High concentrations of garnet could also be recovered as a marketable commodity. Additional electrostatic, mineralogical and metallurgical studies are also being undertaken by Allied Mineral Services to better understand the economic potential of the heavy minerals present.
ERN Price at posting:
6.1¢ Sentiment: Hold Disclosure: Held