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Mindax Increases Mt Forrest Magnetite Resource To 1.7bt

Mindax (ASX: MDX) has increased the total Resource for its Mt Forrest Iron Project in Western Australia to 1.7 billion tonnes at 31.8% iron through the consolidation of the two magnetite resource models used for the mineralisation.

Importantly, the consolidation of the resource models undertaken by consultants, Optiro, allows for more streamlined reporting of the magnetite resource going forward.

Optiro have undertaken all recent resource estimates for Mindax for the regolith and magnetite mineralisation.

The Resource announcement made on 22 November 2011 also included data from the magnetite mineralisation model prepared by CSA Global.

This model is based on surface mapping of the banded iron formation which hosts the magnetite mineralisation.

A review of the model by Optiro against resource drilling has found that the model performs appropriately at its Inferred Resource classification, and the estimated grades are considered to be extrapolated.

As part of the consolidation of the CSA magnetite resource model the density changed to 3.5 from 3.3 and the magnetite mineralisation was reported down to 300 metres RL, where previously this had been reported over a range of depths.

Pathway to mining

Mt Forrest, a major iron mineralised system within the Yilgarn Iron Province, is progressing through feasibility with a view to mining at the end of 2014.

The project covers seven mining leases over 50 square kilometres and includes 20 kilometres of banded iron formation strike.

It is located 160 kilometres northwest of the town of Menzies in Western Australia, which is on the railway line to the deepwater iron ore port of Esperance.

Importantly, the Western Australian Government is committed to a 20 million tonne per annum expansion to the port.

Leases for transport corridors to the Menzies railhead are in place and negotiations with potential rail, port and other infrastructure partners are well advanced.

Mindax also has applications in place for water and infrastructure covering over 2,400 square kilometres in support of the Mt Forrest Iron Project development.

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