GOLDEN West Resources has released its maiden inferred resource estimate for its Wiluna West iron project but has said it only remains an "interim" figure, with assays still pending and over 70% of prospective strike yet untested.
The initial figure of 50.1 million tonnes at 61.1% iron has been outlined for the project but according to Golden West, the estimate is expected to rise with more than 8000m of drilling waiting on analysis.
"This is an interim mineral resource estimate, as exploration is continuing with up to three RC rigs onsite and more than 8000m of drilling awaiting assay at the laboratory, mostly from the C1, C2, C3 and C5 deposits," Golden West said.
The inferred estimate takes into account the Bowerbird, Bowerbird North, C4, C3, Joyners Find and Joyners North deposits.
"All of the deposits consist of dominately hematite and … contain low levels of phosphorous, moderate alumina and silica and relatively low LOI," the company said.
"At present, less than 30% of the prospective strike within the project area has been tested and the potential for further discoveries is considered to be high."
The company's next immediate goal is to define a resource of between 100 and 150 million tonnes and to upgrade a significant portion of the existing inferred mineral resource to indicated and measured status.
The company plans to continue with reverse circulation drilling and carry out a diamond drilling program.
The project is near the town of Wiluna in the Eastern Goldfields and is roughly 700km from the coast.
Shares in Golden West came out of a trading halt and climbed 15c to $2.30 this morning.
GWR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
