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Magnetic Resources To Drill Test 8.5km Strike Of Magnetite Anomalies At Calingiri

Magnetic Resources (ASX: MAU) has completed ground magnetic surveys at its wholly owned Calingiri iron ore project to define drilling targets, with reverse circulation drilling set to begin this week.

The Calingiri project in Western Australia is strategically located about 10 kilometres south of Cliffs Natural Resources' (NYSE: CLF) Yerecoin magnetite project where a resource of 186.8 million tonnes at 30.9% iron has been reported.

The move to begin drill testing follows encouraging surface sampling results, ranging from 40.1% Fe and 23.7% Si02 to 57.3% Fe and 7% Si02, confirming the presence of weathered, iron-enriched magnetite banded iron formation (NYSE:BIF) at the southern end of Magnetics' exploration licence.

Aeromagnetic data shows that high amplitude magnetic anomalies, interpreted to reflect magnetite BIF, extend for a strike length of at least 8.5 kilometres in the southern half of the tenement.

Ground magnetic traverses have been carried out on three profiles across the high amplitude magnetic targets, which occur in soil covered areas currently under crop.

Reverse circulation drilling will be carried out on these three sections to assess the nature and extent of the magnetic target horizons.

Potential similarities to Yerecoin

Cliffs' Yerecoin Resource is notable in that the mineralisation has exceptionally favourable magnetite separation characteristics likely to result in a premium magnetite product at a coarse grind size, similar to Magnetic's Jubuk deposit near Corrigin and possibly similar to Magnetic's recent coarse grained magnetite discoveries at Ragged Rock near Northam.

Such premium quality magnetite continues to be a sought after product because of its low impurities, making it suitable for both blending and as feed for direct reduction furnaces.

Also of note is that the magnetic target extent at Calingiri is similar to the strike extent of the Yerecoin deposits suggesting potential for similar sized deposits at Calingiri.

Extensive iron ore holdings

Situated 100 kilometres northeast of Perth, Calingiri forms part of Magnetic's extensive southwest Western Australia iron ore holdings, targeting both direct shipping ore grade hematite and premium quality magnetite deposits close to rail and port infrastructure.

Calingiri is particularly well located with the BIF targets situated within 4 kilometres of an existing railway.

Ragged Rock exploration

On completion of the first phase of drilling at Calingiri, and subject to completion of land access agreements, Magnetic is planning to carry out an initial drilling program at its Ragged Rock magnetite discovery.

Earlier this month the company identified substantial target tonnage potential at its Ragged Rock project, about 100 kilometres northeast of Perth, after rock sampling at six targets returned grades from 28.1% iron to 55.5% iron.

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