Century Iron Mines Corporation (TSE:FER) reported strong results from its recent exploration program on its Schefferville West property Tuesday, with one target area in particular, Red Dragon, returning "encouraging high grade DSO type mineralisation," according to a statement from the Toronto-based explorer released with the announcement.
The 2012 exploration program, which focused on evaluating several potential direct shipping ore targets on the project located in northeastern Québec and western Labrador, near the Quebec town of Schefferville, included an airborne magnetic survey totalling 2,454 line kilometres as well as ground gravity survey totalling 2,051 stations. Reconnaissance mapping and sampling was also carried out.
A number of DSO targets were outlined based on the geophysical signature and favorable geology and a small orientation drilling program carried out to test a number of these anomalies.
The Red Dragon target area returned encouraging high grade DSO type mineralisation. One drill hole intersected 15m grading 59.62 per cent total iron , while another intersected 45m grading 54.33 per cent, including 15m grading 65.82 per cent total iron. Those two drill holes tested the southwest end of a 12-kilometre linear gravity anomaly and were 220 metres apart along strike.
A parallel gravity anomaly located about 800 metres to the east remains to be tested by drilling. A follow up trenching and drilling program, focussing on the widest portion of the gravity anomalies is expected to be completed by December 2013.
The target area is accessible by road and located roughly 20 kilometres from the community of Schefferville.
"We are very encouraged by the drilling results at Schefferville West (Red Dragon) for its DSO potential," said President and CEO, Sandy Chim.
"The initial assay results from the 2012 Red Dragon drilling program show that the Schefferville West iron formation has the potential to host several DSO deposits. These results validate the Company's current strategy and direction of its DSO exploration in the Trough with the objective of expanding its DSO resource base and potential. We are currently executing a summer exploration program in this area based on these results which includes re-trenching systematically the old IOC trenches and drilling."
The Schefferville West Project currently holds title to three map staked mineral licenses in the Schefferville area comprising 475 claims (11,875 hectares). The licenses are within 12 kilometres of the Tshiuetin Railway that connects via the Quebec North Shore and Labrador (QNS&L) railway to the Port of Sept-Îles. The property is located adjacent to Labrador Iron Mines (TSE:LIM) and New Millennium Iron (TSE:NML)
Century Iron already holds significant interests in several properties in western Québec and in the prolific iron ore-producing region of the Labrador Trough in eastern Québec and western Newfoundland and Labrador.
Century Iron was trading steady on the Toronto Stock Exchange at 40 cents per share the day of the announcement.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.