Enterprise Metals has found what the company believes is a significant iron ore reserve at Burracoppin in the state's wheatbelt.
Enterprise Metals has found what the company believes is a significant iron ore reserve at Burracoppin in the state's wheatbelt.
Burracoppin is 280 kilometres east of Perth on Great Eastern Highway.
In a statement to the Australian Securities Exchange Enterprise said it had found a number of outcrops which displayed intense alteration of magnetite to goethite-hematite.
Enterprise said it believed that the area had the potential to contain significant tonnages of direct shipping ore.
"Based on the positive results of this first reconnaissance visit to the area, the Company has commissioned a geophysical contractor to fly a low level 100m line spaced airborne magnetic and radiometric survey over its tenements to generate drill targets," the statement said.
"This survey is due to commence in October 2010."
Enterprise also believes that there is the potential for gold and base metals to be concealed below the surface in the area.
See company statement below:
Enterprise Metals Limited ("Enterprise" or "the Company", ASX: "ENT") wishes to announce
that it has located scattered outcrops of Archaean quartz‐magnetite/banded iron formation
("Bif") at its Burracoppin project 280 km east of Perth in Western Australia.
A number of the outcrops display intense alteration of magnetite to goethite/hematite
(colour plates overleaf and assays awaited), which is consistent with the Company's view
that the area has the potential to contain significant tonnages of Direct Shipping Ore ("DSO")
where intense weathering of Bif has occurred on deeply weathered structures.
The general location of the Bif units was predicted from regional airborne magnetic data,
and specific outcrops were located with the assistance of local landowners and the
Department of Mines and Petroleum ("DMP") Open File records.
Whilst the Company's initial exploration target is magnetite contained within Archaean
quartz-magnetite/Bif units, the ultimate target is one or more large bodies of high grade
DSO hematite and/or goethite. Based on the positive results of this first reconnaissance visit
to the area, the Company has commissioned a geophysical contractor to fly a low level 100m
line spaced airborne magnetic and radiometric survey over its tenements to generate drill
targets. This survey is due to commence in October 2010.
BACKGROUND TO BURRACOPPIN PROJECT
The project area is centred on the small township of Burracoppin, approximately 70km west of the main Southern Cross greenstone belt which hosts the Mt Caudan iron deposit recently discovered by Cazaly Resources Ltd.
Four tenements (E70/3637, 3638, 3815 & E77/1752) cover an area of approximately 586 km2 and
overlie the western limb of the poorly known Westonia greenstone belt, which is surrounded by posttectonic intrusive granites. Based on previous mapping and shallow drilling, the greenstone belt is known to contain mafic, ultramafic and sedimentary rocks, including Bif. Outcrop within the area is scarce due to a widespread cover of Tertiary laterite, aeolian sand and soil.
The area also contains several small historical gold workings such as Burgess, which were explored during the 1990's. Gold mineralisation occurs within quartz veins and quartz‐rich granitic stringers hosted by sediments, mafic‐to‐felsic granulites and gabbroic rocks. Shallow drilling and mapping by previous explorers has demonstrated the existence of Bif's within the sedimentary sequences of the this greenstone belt. However, there has been no deeper drilling focussed on the linear magnetic units (interpreted to contain Bif's) to specifically test these magnetic units for iron grade and thickness.
The Company considers that potential exists for substantial deposits of iron ore and possibly gold and base metals concealed below laterite and other thin soil and sand cover.
COMMERCIAL BACKGROUND
Enterprise has entered into a 12 month Option Agreement to purchase a 100% interest in the
Burracoppin project by purchasing all of the issued shares in Burracoppin Resources Pty Ltd, the
beneficial holder of granted Exploration Licences E70/3637 and E70/3638. The Option is exercisable by the payment of 4 million fully paid shares in Enterprise, and a gross production royalty of 1.5%.
Yandal Exploration Licence 37/1009 and Prospecting Licences 37/7745‐7750, and Lake Harris
Exploration Licence 28/1958 are also included in the Agreement.
Enterprise has applied in its own name for a further tenement to the south of Burracoppin
(E70/3815) and a further tenement to the north (E77/1752) to cover strike extensions of the
interpreted Archaean quartz‐magnetite/Bif units.
