The initial drilling program puts it squarely on track to develop a low phosphorous direct shipping ore (DSO) operation which could generate early cashflow to enhance the economics of a subsequent magnetite operation.
As part of this years field program, the initial drilling comprised 124 holes for 1,771 metres to explore for iron reconstituted into a detrital conglomerate on the project leases, which could add to the project's iron resources.
While the presence of iron has been confirmed in several drill holes, the full extent of iron occurrence will be determined once the analysis of the drill results is completed.
Plans are also afoot for the second phase of drilling, which will include additional drilling for detrital iron in and adjacent to areas previously drilled as well as possibly in new areas.
Surface gravity surveys are in progress to identify potential new targets. This work is part of the proof of concept study for optimised DSO scoping study.
Earlier this month, the company had said that it was in advanced discussions with strategic partners to fast track the development of its Mt Forrest project.
Located in the northern part of the Yilgarn Iron Province, Mindax's Mt Forrest Iron Ore project is 150 kilometres northwest of the railway line at Menzies which connects with the Port of Esperance iron ore export shipping facility.
It had a cash balance of $3.95 million in cash as of 31 December 2012.
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