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Mindax unlocks DSO potential of Mt Forrest with solid beneficiation results, increases iron resource

Metallurgical test work at Mindax’s (ASX: MDX) Mt Forrest Iron Project in Western Australia has shown that the oxidised iron material types returned grades greater than 63% iron with mass recoveries greater than 70%.

Coarse crushing with heavy media separation, a simple process used by Rio Tinto (ASX: RIO) at its Tom Price operations, showed the best upgrade and mass recovery.

Mindax has also delivered a 20% upgrade to the Indicated and Inferred regolith iron Resource at Mt Forrest which now stands at 14 million tonnes at 45.3% iron. The upgrade is based on 269 reverse circulation drill holes and 4,134 samples.

Significantly, more than 60% of the regolith iron Resource above a 40% iron cut-off has now been unlocked due to the encouraging metallurgical test work, adding further value to the Mt Forrest Project.

Another defining factor of the project is the potential for a further significant resource upgrade with up to 10 kilometres of untested strike length of greater than 40% iron awaiting further exploration.

Yesterday the company announced it has uncovered additional direct shipping goethite-hematite and related iron mineralisation from drilling at Mt Forrest.

Significant mineralisation including new regolith material has been revealed over 2 kilometres and 1 kilometre sections of strike, which was previously undrilled due to areas being inaccessible.

These results will provide a boost to Mindax as the company focuses on initiating mining at Mt Forrest with a modest 1.5 million tonne per annum direct shipping ore (DSO) operation.

Managing director Greg Bromley told Proactive Investors exploration is ongoing because Mindax has not really scratched the full potential of the mineralised system.

“We know we have high ore grades or near ore grade positions (~60% iron) both of goethite-hematites and magnetites,” he said. 

“We have now identified detrital materials shedding off the system that are at surface, that have good thickness and a good bulk grades. They appear to occupy a considerable area and therefore have very good tonnage potential.”

Further drilling is planned for next year to better define the untested and additional strike potential of Mt Forrest.

Mt Forrest covers seven mining leases over 50 square kilometres and includes 20 kilometres of banded iron formation strike.

The project is located 160 kilometres northwest of the town of Menzies in Western Australia, which is on the railway line to the deepwater iron ore port of Esperance.

Mindax will now move onto a larger scale metallurgical test program based on the encouraging results.

The company is making solid progress on approvals, infrastructure planning and negotiations with infrastructure providers with the aim to mine DSO in 2013 and magnetite in 2015.