Iron ore producer, IMX Resources (ASX:IXR) has discovered magnetite at Tomahawk iron ore prospect, 25 kilometres southeast of the its Cairn Hill magnetite-copper mine in South Australia.
This regional discovery for IMX, reinforces managing director Neil Meadow's strategy to utilise existing mining and transport infrastructure already at the Cairns Hill mine.
Tomahawk had the strongest magnetic anomaly in the south of Cairn Hill with a strike length of 3.4 kilometres.
To date, IMX has discovered the nearby Snaefell deposit and with the Tomahawk discovery should enhance the long term returns of IMX's mining operations.
Best results of the discovery showed some significant broad intersections including:
- 164 metres at 31.44% iron from 31 metres;
- 10 metres at 39.51% iron from a wider interval of 138 metres at 33.21% iron from 127 metres; and
- 9 metres at 44.42% iron from a wider interval of 121 metres at 34.04% iron from 33 metres.
Intriguingly, all six reverse circulation drill holes completed at Tomahawk in late 2011 returned significant magnetite iron intersections.
Drilling confirmed a 500 metre of magnetite mineralisation.
Tomahawk is located within exploration licence EL4706 which is part of IMX's Mt Woods Project. The licence is subject to a joint venture with OZ Minerals (ASX: OZL) whereby IMX retains 100% of the iron ore rights and OZ Minerals is earning-in on the non-iron ore rights.
Snaefell is shaping up to potentially become a major long life iron ore asset to complement the Cairn Hill iron ore and copper mine. Recent drilling program has more than doubled the confirmed strike length of the Snaefell magnetite mineralisation to 2.7 kilometres.
IMX owns 51% of the Cairn Hill mine, 55 kilometres south-east of Coober Pedy, South Australia close to the Darwin - Adelaide railway.
Phase 1 is a unique magnetite iron - copper - gold direct shipping ore project. The ore produces a premium coarse grained magnetite product, with a clean saleable copper / gold concentrate.