Energio (ASX: EIO) has received its third batch of assays from the 200 drill holes completed to date at its Agbaja Iron Ore Exploration Project in Nigeria which indicate the thickness of intersections average about 3 metres thicker in the main ore body when compared with the initial results.
The grade and thickness of the ore body is consistent with previous results, with latest assays returning grades of up to 55% iron.
Importantly, the results continue the positive pattern of the analysis of the first four holes with the grade and thickness of the ore body surpassing Energio's expectations.
Agbaja has a resource potential of 1-2 billion tonnes of iron ore.
Chairman Ian Burston said these results compared with the results to date are encouraging as they appear to be homogeneous.
"Also, over the next few months in addition to completing the analysis of drill samples, we will also be selecting samples for metallurgical testing to determine optimal ways of processing this material," he said.
Late last month Energio confirmed grades at the high end of the initial target range of 48-53% iron with its second batch of assays.
The company received the initial batch of samples from the project a week earlier which confirmed the thickness and grade of the oolitic mineralisation, with grades up to 55% iron.
The 20,000 metre drilling program, which is aimed at defining a maiden JORC Resource, is on track for completion in the June quarter of 2012. So far, 200 drill holes have been completed.
Evolution to Junior Resource Explorer
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, including the Agbaja Iron Ore Project.
Kogi State is an iron ore rich region with abundant existing reliable infrastructure, such as sealed roads and highways and rail links to the Port of Warri.
The Agbaja licences contain magnetite in banded iron formation, along with rich oolitic deposits with a conceptual exploration target of 1-2 billion tonnes of iron ore at a minimum of 30% iron, with rock chip samples within the project area returning grades of up to 55% iron, and showing potential for the presence of direct shipping ore.
Energio was previously an ASX-listed toy and gaming business for some years, but the attractive investment opportunity and the steep increase in the price of iron ore were drivers too great to ignore.
To pursue its new strategy, Energio is offering 11.25 million shares at A$0.20 each to raise $2.25 million.
The company plans to use the funds to implement exploration work programs on its existing projects while continuing to evaluate additional exploration projects both within Nigeria and elsewhere.