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Energio completes geophysics, readies for important iron ore drill program in Nigeria
Wednesday, April 20, 2011 by Proactive Investors
Energio completes geophysics, readies for important iron ore drill program in Nigeria

Nigerian iron ore developer Energio (ASX: EIO) has completed initial geophysics at the KCMH Iron Ore Project in Nigeria, enabling primary targets to be selected for a drill program to commence in second quarter 2011.

The KCMH project is in an emerging iron ore province which is attracting significant investment.

Major iron ore and mining companies have been steadily moving into West Africa including: Chinalco, Vale, Shandong Iron and Steel, Sundance Resources (ASX:SDL) and Xstrata - recognising the potential for large discoveries and projects. West Africa is shaping as the major iron ore region for large iron ore discoveries to be made.

The results from Energio's geophysics program have removed the need to complete additional and more extensive aeromagnetic and geo-resistivity test programs.

Several primary targets on and around the Agbaja Plateau have been selected. The Company has already dispersed field teams to investigate these targets with initial field reports returning positive results.

The company is now preparing access roads in the selected areas and is continuing the sourcing of appropriate drilling equipment.

Given the positive results from the recent geophysical program, the Company will continue the evaluation of the resource on the Agbaja Plateau by sinking two exploration shafts to provide bulk samples which will complement and assist the drilling programs.

Nathan Taylor, chairman of Energio, said ?We are encouraged by the initial results of the geophysical program and are excited about the commencement of a drilling program during Q2 2011.?

Energio's focus is on the Agbaja Plateau (licenses EL 8583 and EL 8886) in Nigeria. The iron ore exploration projects are in granted license areas and provide opportunities to define large resource as the leases are adjacent to existing operations.

Significantly for investors, there is a 1-2 billion tonne exploration target iron ore resource grading 40-54% iron (Fe) at Energio's leases. There is also potential for higer grade DSO mineralisation.

As importantly, Energio's iron ore leases are proximal to an existing iron ore railway, road and port infrastructure and a 3.3 million tonnes per annum Itakpe iron ore beneficiation facility which is government owned - presently on care and maintenance.

The Agbaja Plateau project can be accessed via road, rail and (air) from the company?s Nigerian head office in (Lagos). A network of sealed bitumen roads exist throughout the target project areas.

The Ajaokuta steel plant facility is located on a rail line and is expected to be in production by 2012 (ramping up to 10Mtpa production rate by 2020).

Energio is targeting a maiden JORC resource as early as the first quarter of 2012. With upcoming news flow Energio is shaping as a company to watch for developing a large scale resource with favourable existing infrastructure