Padbury Mining JV Telecom Hill VS Jack Hills UpdateBy vautexhc I...

Padbury Mining JV Telecom Hill VS Jack Hills Update
By vautexhc

I have previously drawn comparison between the Jack Hills project (Murchison Metals / Crosslands) and the Telecom Hill project (Padbury Mining / Aurium Resources) in this post http://vautexhc.wordpress.com/2009/09/07/padbury-mining-jv-telecom-hill-vs-jack-hills/. I am updating this information due to recent developments with both projects.

The resource at Jack Hills has now increased from approximately 1BT to some 3BT @ 31.7% Fe as per this announcement http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01025001. The Jack Hills resource is over 7km of strike and exceeded the target estimate.

Telecom Hill is part of the greater Peak Hill and Padbury iron ore projects in the Padbury Mining JV (PMJV) which have recently had a target of some 5.5-6.5Bt @ 30-40% Fe defined over 57.5km. Telecom Hill represents a target of appximately 12km and 1.65Bt. Telecom Hill is also the main target of a recently commissioned gravity survey which will aid in the definition of a Hematite or DSO target. For more information see these announcements http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01018538 (Magnetite Taget) and http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01019070 (Gravity survey).

Telecom Hill is at a very early stage of exploration and more results are required before these types of comparions start to hold a lot of weight. Good results from a drill program measurable in the 10s of thousands of meters costing in the millions of dollars is what is required for this project to be taken seriously. 2010 might see the JV get half way there. There is the possibility of a JORC resource in 2010 if they move fast enough. There is definately tons of potential but it doesnt mean much without results to back it up along the way. The FULL potential will take years to reveal.