Legacy Iron Ore (ASX: LCY) will kick off a second phase of deep reverse circulation drilling next week at the Mt Bevan Iron Ore project on the southern part of the Banded Iron Formation (NYSE:BIF) and cover strike extensions of the 617 million tonne resource.
The Exploration Target for this drilling program is 600 million – 800 million tonnes grading between 30% - 40% Iron (Fe).
A total Exploration Target for the whole of this southern part of the Western BIF is considered to be 1.5 billion tonnes – 2.0 billion tonnes at 30% - 40% Fe, down to a vertical depth of 300 metres.
Mt Bevan is a joint venture between Legacy and Hawthorn Resources (ASX: HAW) whereby Legacy will earn a 60% interest in the project by expending a minimum of $3.5 million to develop the project to a pre-feasibility status.
The intention of the drilling program is to double the current inferred resource, further adding to the potential economics of the project.
The drilling program is scheduled for completion by early November 2011.
Legacy commenced deep drilling on the southern part of the Western BIF target on the basis of several thick magnetite intersections made earlier by joint venture partner Hawthorn. This target is an 11 kilometres continuous magnetite bearing BIF unit.
This BIF horizon is the northern, more extensive part of the same horizon that hosts the Mt Ida magnetite resource of Jupiter (currently an inferred mineral resource of 530Mt grading 31.9% Fe).
In addition, this Western BIF horizon is present over several kilometres of strike length in the northern part of the project area. The project area also contains the Eastern BIF unit that occupies some 20 kilometre strike within the project area.
No drill testing for magnetite has been undertaken on this unit to date.