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IMX Resources eyes iron resource upgrade on completion of drilling at Snaefell Project

IMX Resources (ASX: IXR) has completed the second phase of resource drilling at the Snaefell project, where 31 holes for 7,790 metres were drilled to target a 2 kilometre strike extension, both east and west of the initial core area.

Most holes intersected significant intervals of magnetite mineralisation and samples have been despatched to the laboratory for analysis. The company expects an updated resource in early 2012.

On 12 October 2011, the company delivered a maiden Inferred JORC Resource of 109.8 million tonnes at 30.13% iron (27.5% iron cut-off grade) at Snaefell in South Australia.

The drilling was designed to test an exploration target tonnage of 200-300 million tonnes at 28-35% iron additional to the maiden Inferred Resource.

IMX is bullish that Snaefell could become a major long life iron ore asset to complement the Cairn Hill iron ore and copper mine and the company is well placed to be able to advance the project towards production.

Johann Jacobs, IMX chairman, said “Snaefell is developing as a major iron ore project. The initial results from Snaefell are encouraging and the project could potentially give IMX a presence in the Coober Pedy area for many years to come.”

Snaefell is 100% owned by IMX and is located within the Kangaroo Dam exploration licence (EL4649), part of IMX's Mt Woods Project. It lies 12 kilometres south west of the Cairn Hill iron-copper-gold mine and 55 kilometres south east of Coober Pedy.

The licence is subject to a joint venture agreement with OZ Minerals (ASX: OXL), whereby IMX retains 100% of the iron ore rights and OZ Minerals is earning-in on the non-iron ore rights.

On October 19 the Cairn Hill iron ore and copper mine reached a significant milestone after it completed the loading of its one millionth tonne of ore from Port Adelaide, South Australia.