Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Magnetic Resources kicks off DSO test work from Wubin project

Magnetic Resources (ASX: MAU) will conduct crushing and screening test work to assess the potential of direct shipping ore (DSO) from the Wubin project, which is located north-east of Perth.

The test work is a follow-up to some recent high grade rock chips, with a third of the 278 samples reported greater than 40% iron.

The test work is expected to show whether the silica and alumina levels can be significantly reduced with a complimentary increase in iron content.

Magnetic said these results highlight the potential of the area to contain potentially mineable volumes of DSO-type materials with minimal stripping ratios.

Once the test work has been completed, Magnetic will then conduct ground gravity surveys targeting zones of reduced magnetic response on interpreted banded iron formation horizons.

Wubin currently has an exploration target of 500 to 1,000 million tonnes BIF and 50 to 100 million tonnes DSO.