West Perth-based gold and base metals explorer, Brumby Resources Ltd, has expanded its portfolio of Pilbara iron ore tenements with the acquisition of six Yule River tenements from Resource and Investment NL.
West Perth-based gold and base metals explorer, Brumby Resources Ltd, has expanded its portfolio of Pilbara iron ore tenements with the acquisition of six Yule River tenements from Resource and Investment NL.
The tenements, located about 40 kilometres south-west of Port Hedland, will increase Brumby's total Yule River Project land holdings to over 1,300 square kilometres and total Pilbara land holdings to over 3,600km².
Brumby said early field work will focus on exploring for iron ore deposits similar to the +100Mt Balla Balla iron ore deposit located 50km to the west of the holding.
The full company announcement appears below:
Brumby Resources Limited (ASX: BMY - "Brumby") is pleased to announce the acquisition of a further 690km² of prospective iron ore tenements at the Yule Group Project area, located approximately 40 kilometres south-west of Port Hedland in Western Australia's Pilbara region.
The acquisition further enhances the Company's iron ore presence in the region and follows last week's announcement that Brumby had acquired the iron ore rights to the company's Goldsworthy Joint Venture tenements.
The newly acquired tenements - purchased from ASX-listed company Resource and Investment NL (ASX: RNI - "RNI") - comprise 4 Exploration Licences (E45/2939, E47/1131, E47/1750, E47/1751) and 2 Exploration Licence Applications (ELA47/1730 and ELA47/1731) and cover over 690km² of land adjacent to Brumby's existing Yule Group tenements.
The Yule River Project area now comprises 8 Exploration Licences and 2 Exploration Licence Applications over approximately 1,320km² of land in the richly mineralized Pilbara region.
Under the terms of the acquisition, Brumby will obtain the rights to all minerals produced from the tenements in consideration to RNI of a 1% Net Smelter Royalty (NSR) on future production. An NSR of 0.5% is also payable to the original vendor of tenement E45/2939. Brumby will manage the tenements and be responsible for meeting all expenditure commitments and costs.
A preliminary review of the available historical data indicates that the recently acquired tenement holdings are prospective for iron ore, gold and base metals. Initial exploration will consist of the compilation of historical data and the procurement of high resolution aeromagnetic and radiometric survey data.
Early field work will focus on exploring for iron ore deposits similar to the +100mt Balla Balla iron ore deposit located 50km to the west and operated by Aurox Resources. The Company will also assess a known gold-arsenic-copper anomaly on E47/1131.
Commenting on the acquisition, Brumby's Managing Director Mr Geoff Jones said: "We are delighted to be able to further consolidate our Pilbara ground holding via this large acquisition of land and we intend to start exploring the tenements during the course of 2008 following the granting of statutory approvals."
"We believe that this acquisition, in conjunction with our recent purchase of the Goldsworthy iron ore rights and Pardoo East iron ore targets, enables Brumby to pursue a very active exploration programme in the upcoming field season on a range of tenements highly conducive to iron ore and just as importantly, close to quality transport and infrastructure."
