Venus surges on Yalgoo iron resource

Shares in aspiring Mid-West iron ore miner Venus Metals Corporation surged over 11 per cent today after it confirmed a better than expected magnetite resource at its Yalgoo iron ore project, east of Geraldton.

Venus said the Bilberatha Hill deposit, 80km north of Gindalbie Metals big Karara deposit, was estimated to contain 443.9 million tonnes grading 30.29 per cent iron, well above its initial exploration target range of 268-420 mt.

The news sent the company's shares racing as high as $2.10 before easing in early afternoon trade to $1.95, a gain of 20 cents or 11.4 per cent.

The company said the resource estimate, together with initial Davis Tube Recovery test results which indicated the potential to yield high grade concentrate of up to 70 per cent iron, would be incorporated into a scoping study due for completion in early 2011.

Venus managing director Matthew Hogan said the company looked forward to working with its Chinese joint venture partner, Shandong Provincial Bureau of Geology and Minerals, to confirm the Yalgoo project as a potential long life iron ore producer.

Shandong subsidiary HD Mining & Investment can earn up to 50 per cent in Yalgoo by sole funding $8 million in exploration and evaluation work.