Fe gains on initial Mt Ida drill results

Shares in iron ore explorer Fe Limited have risen after it announced positive results from initial exploration at its recently-acquired Mt Ida iron ore project in the Yilgarn.

By close of trade today, Fe shares gained 12 per cent, to trade at 14 cents.

Fe announced to the ASX toiday that rockchip sampling and mapping confirmed banded iron formations at Mt Ida with grades from 35 per cent to 64 per cent iron at surface.

The company estimated the exploration target to be 1.1-1.4 billion tonnes of banded iron at 30 to 37 per cent ferrous based on geophysical modelling.

Fe managing director Kim Bischoff said: "these initial exploration findings justify our belief that the Mt Ida iron ore project has excellent iron ore potential in a district with significant exploration under way and that benefits from existing and nearby infrastructure in the emerging Yilgarn iron province of Western Australia."

The Mt Ida project was acquired by Fe in March, and comprises the rights to explore and mine for iron ore over 71 licences covering 370 square kilometres in the Yilgarn.