Best intercepts from drilling were 61m @ 40.1% and 71m @ 37.8%
...."As the magnetite-bearing banded iron formations at Feral are generally about 50 metres in true width, the results of the Satmagan analyses indicate that waste:ore ratios are unfavourable for economic mining and extraction of magnetite over the prospect area."
From the Red River 09 Annual
"An RC drilling program comprising 13 holes for a total of 600m was drilled in September 2008. The drilling failed to encounter direct shipping grade hematite iron ore despite drilling a strong gravity anomaly with surface outcropping massive hematite. The drilling showed that the hematite is a veneer rimming gabbroic intrusive rocks. Red River Resources withdrew from the Feral joint venture in late 2008."
Ownership reverted to the original owners or "the syndicate" as it was known in 2006 when dealing with RVR and as it is known now in their dealings with QNL. The terms with QNL are very similar to those when dealing with RVR back in 06.
Summary
Magnetite: True widths of around 50m makes it unlikely to be economic
Haematite: Drilling of highest priority gravity and rock chip defined targets failed to identify meaningful DSO results
On the plus side, the leases are adjacent to Sinosteel.
As an investor, I wouldn't go long based purely on this prospect. Thats the only comment I will make. I don't trade, so I won't comment on short term potential for fast money.
Good luck.
QNL Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
