ferrowest resource estimate exceeds expectatio

IRON ore hopeful Ferrowest has reported the first mineral resource estimate from its Yalgoo magnetite project in Western Australia's Mid-West region.




Brett Manning

In a statement, the company announced a total inferred resource from the Yogi deposit of 112.5 million tonnes at 25.3% iron, 49.5% silica, 5.6% aluminium, 0.057% phosphorus and 0.39% loss on ignition.

Ferrowest managing director Brett Manning said the initial target for the first resource estimate had been 75Mt.

"We have been in operation for only 11 months and started the Yalgoo iron project with no resources and no drilling of our own," he said.

"Securing sufficient resources to underpin the Yalgoo iron project's requirements for a 20+ year operation is a key building block in the project's development.

"In fact, with a further two-thirds of the deposit yet to be drilled, the total resource potential is no longer an issue for us."

Ferrowest intends to continue drilling at its Yogi deposit in the fourth quarter as part of a definitive engineering study.

The new drilling in selected sections of the inferred mineral resource aims to allow determination of ore reserves to further advance the project and identify further resources to add to the company's inventory.

The company said metallurgical test work was still under way as part of its pre-feasibility study, which is expected to be finished before the end of July.

"When the results of the metallurgical test work are combined with the geophysical and resource models, this will provide an excellent understanding of the Yogi deposit and be used to define infill drill targets," the company said.

Shares in Ferrowest have slipped 4.5c to 65c in morning trade.