DMM has a lot going for it at the moment with its Mayoko Project....
It has just announced an initial resource of 33MT @ 55.5% Fe however has much room for upgrade as the extract from the last announcement shows below...
The JORC was based on the data provided from 26 holes with an average depth of only 38 meters. The company use a cut of grade of 50%Fe and it is amazing how many holes had the entire length of the core above this cut of grade. Deeper drilling could well prove an upgrade in the current resource zone in itself.
The company are certainly looking to step up exploration in the project with a drilling program of 20,000m+ planned to commence in July.
It comes as no surprise that the company has stated an exploration target of 110 – 135Mt of haematite enrichment at 55 – 58% Fe and 750 – 800Mt magnetite at 35 – 45% Fe
There is also the advantage of the fact that resource is approximately 3km from the existing rail!!!!
With the scoping study due to be released sometime in the next two weeks or so I would be surprised to see this push up to well over a dollar leading up to it....as the smart investors get in early:)
This is significantly cheaper than many other iron ore companies such as BRM when they first announced their initial JORC resource which were of similar size, and should be valued at well over a dollar IMO.
