"The laboratory results obtained from the rock chip samples are encouraging. The average iron grade of all the 19 samples taken in E47/882 is 59.64%. The samples contain a low proportion of the deleterious minerals, silica and alumina. The levels of phosphorus are also relatively low, which is a further favourable outcome. The iron content compares favourably with the average grade of 56% Fe announced by Fortescue Metals Group (ASX Release, 15th November 2007) for the CID in Serenity Valley which adjoins E47/882 to the southeast. They also compare favourably with the average grade of 56.9% Fe in CID from Rio Tinto’s Caliwingina North deposit located about 10km north of E47/882 (ASX Release, 7th February 2008). The results strongly suggest that the major CID system discovered by Fortescue Metals in Serenity Valley extends into the southern parts of the Flinders licence area. Furthermore, the wide distribution of positive samples in the valleys in the northern parts of E47/882 suggest that high grade DID’s and CID’s probably also occur in the major northward-orientated valleys in the licence area. All the samples were taken from outcrop and are generally not representative of the vertical section of iron in the project area. However, the samples S2 to S4 and S8/S9 were taken at intervals down cliffs of CID/DID outcrop in ‘Area A’. These cliffs are, in effect, vertical sections. The samples therefore give some indication of the variation of iron content with depth. It is significant that both sets of samples (S2 to S4 and S8/S9) returned consistent high-grade iron results averaging about 58% Fe. Although these samples represent only small tests on the edge of the system in ‘Area A’, the results do suggest that high iron grades may be consistent throughout the profile in the major deposits lying undercover in the rest of the licence area.”
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