CZR Resources has expanded its Robe Mesa project in the Pilbara after agreeing to acquire a nearby tenement from Fortescue Metals Group subsidiary FMG Pilbara to the south of Rio Tinto’s Mesa F iron ore project.
Subject to the completion of the sale, the company will make a cash payment of $150,000 to Fortescue in addition to 3.3 million CZR shares and a 1 per cent free-on-board revenue royalty covering any future production from the site.
CZR also holds the title to its Robe South deposit that sits between the new acquisition and Rio’s Mesa deposit. Robe South contains 4.2 million tonnes at 53 per cent iron ore with a cut off grade of 50 per cent.
The company believes a higher-grade zone of the Robe South deposit extends into the newly acquired tenement and increases the area’s strike length to around 1.1km. The zone has the potential to develop into a satellite deposit that can feed the company’s Robe Mesa processing plant.
Earlier this month CZR boosted the mineral resource at its Robe Mesa project by 20 per cent to 45.2 million tonnes at 56 per cent iron ore.
The explorer says the new tenement has heritage clearance over drill lines in the target higher-grade zone and it expects to be drilling early in the new year in preparation for a Robe South resource update.
CZR Resources Managing Director, Stefan Murphy said: “In addition to the resource potential on E08/2137, CZR has pegged two tenements as potential haul routes that cross through the tenement. Securing the potential for road construction materials on the southern flank of Rio Tinto’s Mesa F deposit made the acquisition even more attractive to CZR.”
The new tenement has seen little exploration in recent years with the last drill campaign carried out by Red Hill Iron in 2009. Assay highlights from Red Hill’s program include a 4m hit at 56.5 per cent iron from 22m and an 8m intercept going 55.5 per cent iron from 22m.
CZR says Red Hill’s results align with drilling the company has conducted at Robe South and indicate the presence of a potential higher-grade zone.
Significant intercepts from the company’s latest drill program at Robe Mesa include 11m at 57.3 per cent iron from 34m, 12m running 57.2 per cent from surface, 11m going 57.1m from 33m, 16m grading 57 per cent from surface and 11m at 57 per cent from a depth of just 35m.
Some of the longer strikes include 17m at 56.5 per cent iron from surface, 16m going 56.1 per cent from surface and 15m grading 56.9 per cent from surface.
Just last week CZR entered into a memorandum of understanding with Strike Resources and CSL Australia to form a consortium to secure approvals for a bulk loading export facility at the Port of Ashburton, 200km southwest of Karratha. The three companies are considering a 5Mtpa iron ore and bulk material facility capable of taking ore via road train to transhipment vessels.
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By Matt Birney
