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  • Magnetic Resources Steps On The Gas At Ragged Rock, Drilling Set To Begin  0 comments
    Mar 7, 2013 8:01 PM

    Magnetic Resources (ASX: MAU) is moving very quickly to begin drilling at its Ragged Rock Project in Western Australia next week to define the thickness, quality and extent of the identified high grade magnetite.

    Adding to the strength of experience that will be involved in the 1,900 metres of reverse circulation drilling, ex-Fortescue Metals Group executive Gavin Fletcher will assist the exploration team.

    Fletcher recently joined Magnetic as part of a group of iron ore project experienced personnel that approached Magnetic to work on the Ragged Rock Project and commit to a A$1 million investment.

    Reconnaissance rock-chip sampling at Ragged Rock has confirmed the presence of outcrops of multiple coarse grained, crystalline, moderately dipping banded iron formation horizons with substantial target tonnage potential.

    Recent mapping has confirmed a strike length of 41 kilometres at Ragged Rock.

    George Sakalidis, managing director, commented: "We are delighted with the potential at Ragged Rock.

    "The commencement of drilling has followed extensive rock chip sampling confirming the potential for Ragged Rock to host a high grade coarse grained magnetite resource, a characteristic acknowledged by the investment group that recently committed to a placement in Magnetic.

    "The drilling program will provide a clear indication of the geological quality, scale and value of Ragged Rock, with the aim of moving towards the identification of a JORC Resource and unlocking the potential value of this project."

    Drilling plan

    The initial drilling program at the 6.8 kilometre long Target 1 will involve around 10 drill holes. Subject to access, a further six holes are planned each to a depth of 120 metres.

    This campaign has been designed to test the thickness, quality and extent of the weathered cap as well as the potential for high grade magnetite mineralisation under cover along the entire strike length of Target 1.

    The results are intended to provide an early indication of the geological potential of the project and form the basis for a JORC Resource.

    Drilling is expected to take about two weeks with initial assays anticipated to be available within a month of completion.

    The Ragged Rock Project is well positioned for possible future infrastructure scenarios including road or rail to the Albany sea port.

    World class team

    A team headed up by Gavin Fletcher, ex-principal process engineer for Fortescue Metals Group (ASX: FMG), and John Blanning, former vice president mining for African Minerals, approached Magnetic to work on the Ragged Rock Project.

    This is a clear indicator of the calibre of the Ragged Rock Project.

    The group has significant skills in the identification and definition of iron ore deposits, the conducting of metallurgical testwork and commissioning of iron ore operations.

    The team offered to work beside Magnetic's current exploration team and Board to assist in defining a JORC Resource, the direction of metallurgical test work, flowsheet development, technical marketing and technical support through to and including project financing.

    The offer was conditional on the group securing access to a significant equity stake in Magnetic via a placement agreement.

    This has led to a $1 million investment in the company.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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