This follows on the company starting yesterday a field program at its Meekatharra North Gold Project, which is located along strike from the Paddy's Flat gold field where 2.5 million ounces has been produced.
Mindax plans to drill holes totalling 6,000 metres over the two major areas that have been identified at the Western Australian project.
The detrital areas comprise clasts of hematite and goethite mixed with clay that may potentially beneficiate to direct shipping material subject to metallurgical test work.
This work is part of Mindax's program to optimise the previously completed DSO Regolith Scoping Study.
Successfully finding detrital iron mineralisation would increase the scale of both the mining output and project life.
"We continue to build momentum on our portfolio of key commodity projects. Our 2013 field program is another notable step forward. Mt Forrest is our flagship project and has considerable potential. This program will enable us to progress key aspects of our DSO Project optimisation work," managing director Dr Steve Ward said.
Mt Forrest has a current Resource of 1.7 billion tonnes at 31.8% iron through the consolidation of the two magnetite resource models used for the mineralisation.
Mindax has been focusing on fast-tracking the direct shipping ore stage of the Mt Forrest Iron Project, which will underpin the future development of the high quality magnetite resource.
Mt Forrest will be developed initially as a modest beneficiated DSO operation of 1.5 million tonnes per annum, with potential for first ore to be shipped in 2014.
A Scoping Study completed last year has shown solid metrics including an internal rate of return of 32.8% and a net present value (10%) of A$86 million.
Revenue for a DSO operation has been estimated at over $1 billion and net cash flow at $204 million.
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