Cape Lambert to begin Pilbara iron ore drilling next month

Leederville-based Cape Lambert Iron Ore Ltd has announced plans for a reverse circulation drilling program at its iron ore project in the Pilbara region to commence next month.

The drilling program, the first by the Company at the project, will comprise of around 25 holes for a total advance of approximately 4000 metres. The program will be carried out by Drillcorp-Western Deephole, a highly experienced and respected drilling contractor.

The first drilling phase will provide the company with further data relating to grade and mineral processing characteristics of the known deposit, and will also validate the results of work undertaken by the previous tenement holder, Robe River Mining Pty Ltd.

Cape Lambert said some drilling would also be undertaken over the newly discovered highly magnetic area to the west of the current 2.5 billion tonne JORC compliant resource.

This area was identified after assessing recently acquired detailed low level aeromagnetic data flow over the project area, carried out by Titan Resources NL in 2000 and subsequently interpreted by Southern Geoscience Consultants. This data was not available to the previous landholders Robe River. This large area with strongly enhanced magnetism has the potential to significantly increase the present resource estimate.

This work will allow the Company to progress the Bankable Feasibility Study for the development and subsequent mining and export of iron ore from the project.

Prior to relinquishing the project Robe River had reported various hematite-enriched pods with iron grades up to 65% within the Cape Lambert deposit. The Company will carry out further investigations into these deposits as this type of ore might be suitable to direct shipping and create the opportunity to generate an early cash flow.