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Energio: Initial drill results return up to 55% iron from Agbaja Project

Energio (ASX: EIO) has received the first batch of samples from the Agbaja Iron Ore Project in Nigeria, with results in line with the expected range of 48-53% iron.

The company has appointed global mining consultant Coffey International to prepare a maiden JORC Resource.

Agbaja has resource potential of 1 to 2 billion tonnes of iron ore.

Energio is ahead of schedule on the 20,000 metre resource definition drilling program which is aimed at defining a maiden JORC Resource.

So far, 200 drill holes have been completed, with results from the first four holes returned.

These initial results have confirmed the thickness and grade of the oolitic mineralisation, with grades up to 55% iron.

Energio Chairman, Dr Ian Burston said “these initial results are very encouraging as they appear to be homogeneous and are supportive of the significant exploration target we believe exists at the Agbaja Iron Ore Exploration Project.

“It further supports our earlier thinking that the Agbaja Iron Ore Exploration Project strata comprises approximately 10m of overburden followed by 20 to 30 metres of ore bearing sandstone material.”

Over coming months, Energio will complete a full analysis of the drill samples, conduct metallurgical testing to determine the best way to process the material and finalise an infrastructure study to identify the most efficient production and export solutions.

The drill program at Agbaja will restart early next week, and is expected to be completed in the June quarter of 2012.

Change of activities

Shares in Energio are in suspension as the company makes the shift to iron ore.

In 2011 the company exercised its call option with TGP to acquire 100% of the fully paid ordinary shares in KCMH Australia.

KCMH Australia is the holding company of KCM Nigeria which owns of a package of iron ore licences in Kogi State, Nigeria.