Iron Ore Holdings makes significant find

11/11/2008 - 15:34

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West Perth-based Iron Ore Holdings has discovered a new high-grade iron ore deposit at its 100%-owned Weeli Wolli Project near Yandicoogina in the Pilbara.

West Perth-based Iron Ore Holdings has discovered a new high-grade iron ore deposit at its 100%-owned Weeli Wolli Project near Yandicoogina in the Pilbara.

IOH has an MOU in place with Rio Tinto for a mine gate sale covering production of up to 1.5Mtpa from the 100%-owned Phil's Creek Project.

Phil's Creek is expected to be IOH's first production opportunity, with a low-capital cost contract mining operation targeted to commence production in early 2010.

IOH managing director, Matthew Rimes, said the company was beginning to deliver on the second leg of its growth strategy by progressively testing its quality pipeline of exploration prospects in the Pilbara region within close proximity of existing mine infrastructure.

"While a lot of juniors have rapidly growing resources but no clearly defined path to production, we already have the latter in place and we are only just starting to get our teeth into our extensive exploration portfolio," he said.

 

Full announcement below:

 

IOH BOOSTED BY HIGH-GRADE IRON ORE DISCOVERY AT WEELI WOLLI

EXTENSIVE ZONE OF NEAR-SURFACE BROCKMAN-STYLE MINERALISATION DISCOVERED

Emerging Western Australian iron ore company, Iron Ore Holdings Limited (ASX: IOH - "IOH"), has opened up a significant new growth front within its Central Pilbara exploration portfolio after announcing a new high-grade iron ore discovery at its 100%-owned Weeli Wolli Project near Yandicoogina in Western Australia.

IOH - which has an extensive 2008/09 drilling program planned covering a series of prospective targets within 20km of existing mine infrastructure - said today (Tuesday) that the recently commenced Reverse Circulation (RC) drilling program at Weeli Wolli had intersected a significant zone of high-grade bedded iron ore mineralisation.

The near-surface assay results include outstanding intersections of "Brockman-Style" mineralisation including 26 metres grading 63.5% Fe from 34 metres, 42 metres grading 60% Fe from 4 metres and 54 metres grading 59.1% Fe from 47 metres. The results come from an initial sample of five holes out of a total of 64 holes (for 4,522 metres) completed to date.

The Brockman Iron Formation, which is considered to be the most valuable and highest iron grade ore, hosts a number of world-class iron ore deposits in the Pilbara including BHP Billiton's Mt Whaleback Mine and Rio Tinto's HI Mt Tom Price and Paraburdoo Mines.

The Weeli Wolli Project is located in the eastern part of IOH's extensive Central Pilbara tenement portfolio and represents one of several priority exploration targets to be tested by the Company as part of its 2008/09 program. It is located immediately north east of BHP's Yandi Iron Ore Mine and Rio Tinto's Yandicoogina operations.

IOH's current total iron ore resource portfolio comprises approximately 62 million tonnes of predominantly Channel Iron Deposit (CID) iron ore resources, including the Phil's Creek Deposit (DSO resource of 9.2 million tonnes at 58.0% Fe) and the Extension Deposit, where an Indicated Resource of 46.8Mt @ 50.0% Fe, has been defined.

The Company's Pilbara growth strategy is underpinned by an arrangement with Rio Tinto for a mine gate sale of up to 1.5 million tonnes per annum of ore from the Phil's Creek deposit.

"We are very pleased with this significant early success in our 2008/09 exploration program," said IOH's General Manager - Exploration, Tony Greenaway. "With further drilling, this should provide an opportunity for us to further expand our resource inventory of high-grade DSO ore in the Central Pilbara region.

The current drilling programme - which is scheduled for completion by mid-November - will comprise an estimated 6,000 metres of Reverse Circulation (RC) drilling and is aimed at testing a number of previously identified targets on the eastern portion of the project area adjacent to the Weeli Wolli Creek system. Results from the outstanding 59 completed holes are expected to be received during the December 2008 Quarter.

IOH's Managing Director, Mr Matthew Rimes, said the Company was beginning to deliver on the second leg of its growth strategy by progressively testing its quality pipeline of exploration prospects in the Pilbara region within close proximity of existing mine infrastructure.

"While a lot of juniors have rapidly growing resources but no clearly defined path to production, we already have the latter in place and we are only just starting to get our teeth into our extensive exploration portfolio," he said.

"In total, we are planning to drill 25,000 metres in 2008/09. This discovery gets us off to a great start and gives our exploration efforts substantial momentum moving forward."

 

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