News: Coziron Resources sees production potential in tough iron market

New progress at Coziron Resources’ (ASX:CZR) Yarraloola project  in Western Australia has afforded the company rare potential to be a commercial iron ore producer, even during the current depressed pricing for the steelmaking ingredient.

Assays from the project’s Robe Mesa pisolitic ironstones area confirmed an upper zone of mineralisation up to 28 metres thick with one intercept grading 63.7% iron over 22 metres.

Another 30-metre sample recorded an iron grade of 61.2% and underlined the potential of a subcropping zone where mineralisation was found to be up to 30 metres thick.

The discovery of a new style of magnetite mineralisation at Yarraloola earlier this year added anticipation to a successful drill campaign which recently completed 52 vertical holes for 3320 metres at the site.

This work supported an updated resource for Robe Mesa of 2 million tonnes grading 55.7% iron, using a cut-off grade of 55%.

Additional expansion of the project is possible at targets in its easterly outcrop and subcrop extensions.

Infrastructure advantages at Yarraloola include a bitumen-sealed road connecting to the town of Pannawonica, station tracks across much of the tenement area and a gas pipeline. A haul road to a multi-user port at Cape Preston East and a railway to Anaketell Port are being proposed.


Analysis

The latest results from Robe Mesa confirm the project’s geological model and improve opportunities for increasing both resource confidence and tonnage. 

While the development is still in its early days, this exploration progress suggests Robe Mesa could support a standalone mining operation, particularly given its ideal location in proximity to both existing and proposed transportation infrastructure and coastal ports.

As a surviving member of a thinning class of junior iron ore plays, Coziron represents significant upside potential in the event of any resurgence for the sector.