Leederville-based iron ore company Cape Lambert Iron Ore Ltd has issued 600,000 shares and made an option payment of $200,000 to Wickham-based Norwest Sand & Gravel for three potential iron ore tenements.
Leederville-based iron ore company Cape Lambert Iron Ore Ltd has issued 600,000 shares and made an option payment of $200,000 to Wickham-based Norwest Sand & Gravel for three potential iron ore tenements.
The full text of a company announcement is pasted below
Iron ore exploration and development company Cape Lambert Iron Ore Ltd has signed an agreement with Norwest Sand & Gravel to acquire tenements E47/1233, E47/1248 and E47/1271.
These tenements are located adjacent to the companies Cape Lambert Iron Project (EL47/1462) in the northern coastal Pilbara of Western Australia, which is between the towns of Karratha, Roebourne and Wickham.
As part of the agreement Cape Lambert has the exclusive right to acquire the tenements for an option payment of $200,000 plus 600,000 Cape Lambert Iron Ore Ltd ordinary shares.
This option will expire on 30 September 2007.
On or before the expiry of the Option Cape Lambert must decide if it intends to purchase the tenements from Norwest Sand & Gravel using one of two schemes already agreed between the two parties. Both schemes have a cash and scrip consideration, with one scheme also having a royalty provision on any iron ore shipped from the tenement/s.
Commenting on the acquisition Cape Lambert Iron Ore Director Tony Sage said, "We believe the extension to the known mineralisation, as determined by recent drilling, may extend into these tenements and we will be agressively exploring along strike to determine if this is the case."
On 19 December 2006 Cape Lambert confirmed that it had uncovered a new high-grade mineralisation zone at its namesake project following the receipt of the latest Davis Tube Recovery results relating to drill holes MA210, MA211 and MA208. These holes are located outside the current resource of 2.5 billion tonnes @ 30% Fe (250m depth & 25% Fe cut off) and are significantly at a high grade and with wider intersections.
Drill hole MA210 returned a DTR result of 202m (from 100m to 302m) at an average concentrate recovery of 35.3% by weight, 66.9% Fe, 5.4% SiO2, 0.35% Al2 O3 and 0.006% P. This hole is located approximately 100m to the southeast of drill hole MA209, which also had significant high grade DTR.
"The nature of the geological formation has convinced the Board of Cape Lambert to intially take an option over the tenements with a view to a full acquisition subject to drilling results," Mr Sage said.
"Cape Lambert plans to undetake significant drilling at the project so as to determine the full extent of the ore body extension. This is likely to include RC and Diamond drilling, which will commence as soon as practibly possible."
"These tenements provide the company with more options in terms of the location of infrastructure required to support the project as it moves from the development to production stage." Mr Sage said.
As part of the agreement Norwest Sand & Gravel retains the right to expore for and develop any economic occurances of gold mineralisation on the tenements, subject to such activities not being detrimental to the proposed Cape Lambert operations.
