polaris updates yilgarn resource base..

Miningnews article today.

Polaris updates Yilgarn resource base


Wednesday, 14 May 2008

IRON hopeful Polaris Metals has reported an updated inferred mineral resource for its Yilgarn iron ore project in Western Australia following the resolution of a dispute with Portman Mining over ownership of the Bungalbin tenement.



Perth-based Polaris says the inferred mineral resource for the combined Yilgarn project deposits are now estimated at 30 million tonnes at 58.1% iron with a 55% iron cut-off.

The Yilgarn project consists of five active prospects including Carina, Bungalbin East, Chamaeleon, J4 and J5.

The exploration potential of Bungalbin East and the western extension to J4 were assessed by resource estimation consultants Hellman and Schofield, however based on the nature of the data, inferred mineral resources cannot be reported in accordance with the 2004 JORC Code, Polaris said.

Polaris said broadly spaced and historic drilling at Bungalbin East and the western extension to J4 suggested the presence of mineralisation with exploration potential of 70-90Mt at 57-58% iron.

“No assessment of the potential at Chamaeleon has been made as more drilling is required,” Polaris said.

The company’s Carina, J4, J4 West and Chamaeleon deposits lie outside the proposed extensions to the Mount Manning Nature Reserve, however J5 and Bungalbin East lie within the proposed extensions.

Polaris has been given three years to quantify relative commercial and environmental values to facilitate State Government approval.

Drilling began at the Carina deposit in April, aimed at upgrading the status to indicated mineral resource classification by mid-2008.

Further resource drilling is planned at Chamaeleon, J4, Bungalbin East and J5, while regional exploration aimed at discovering new prospects will continue.

The news comes after Polaris earlier this month assumed rights over three iron ore tenements in the Bungalbin area of Western Australia from Portman.

The three disputed tenements were the Bungalbin East, J4 and J5 deposits.

The companies, which were in a joint venture over the tenements, had been wrangling over Bungalbin, part of Polaris’ Yilgarn iron ore project, since mid 2007.

Shares in Polaris have slipped 4c to 60c in early afternoon trade.