Magnetic Resources (ASX: MAU) has applied for a tenement that has the potential to increase the strike length of Target 1 at the Ragged Rock iron ore project in Western Australia by 120% to 15 kilometres.
The Collins Hill (E70/4478) tenement is adjacent to the Ragged Rock tenement and will increase the Ragged Range project to 507 square kilometres from 353 square kilometres.
"The Collin's Hill tenement has always been a natural fit for the Company, as we believe the mineralisation from the Ragged Rock project continues along strike and onto this adjoining tenement, managing director George Sakalidis said.
"Magnetic had planned to negotiate a joint venture in order to secure this extension, which would have required the company to commit to exploration for a percentage of the project.
"So for Magnetic to be able to acquire 100% in its own right is a major achievement and one that we hope will provide significant upside to shareholders."
Target 1 at Ragged Rock is the company's high priority target and is currently undergoing its first round of reverse circulation drilling aimed at defining a JORC resource.
Some preliminary sampling of the Target 1 strike extension within the new application area by Magnetic shows very encouraging assays ranging from 40% to 54% iron and exhibits similar coarse grained magnetite characteristics on surface to those found at the Ragged Rock project.
Aeromagnetic signatures are also promising and are of similar amplitude as Target 1.
Upon acquiring the Collin's Hill tenement, Magnetic has identified a further 19 kilometres of new iron ore targets delineated east of Target 1. There are now 15 targets within the Ragged Range Project area totalling 68 kilometres in length, all prospective for coarse grained magnetite.
The company plans to carry out further ground magnetic, geological mapping, rock chip sampling within this promising southern part of Target 1 within the new Colin's Hill application after access and tenement approval.
Ragged Rock is located within 10 kilometres to 20 kilometres from the Albany railway line.
Magnetic has recently being joined by ex-Fortescue Metals Group executive Gavin Fletcher 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.
Fletcher will assist the exploration team with the 1,900 metre reverse circulation drilling program that will define the thickness, quality and extent of the identified high grade magnetite.
The initial drilling program at Target 1 will involve around 10 drill holes. Subject to access, a further six holes are planned each to a depth of 120 metres.
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.
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