Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Energio Continues To Receive Encouraging Agbaja Iron Ore Drilling Results

Energio (ASX:EIO) continues to receive results from its drilling campaign at the Agbaja Iron Ore Exploration Project in Nigeria that are consistently higher than initially expected.

Chairman Ian Burston said the results from the sixth batch of assay results were encouraging as they appeared to be homogeneous.

Energio had previously noted that the thickness of intersections average about 3 metres thicker in the main ore body when compared with the initial results and had assay results of up to 55% iron.

The latest results include assay result of up to 52.46% iron.

Burston said that over the next few months, the company will, besides completing the analysis of drill samples, be selecting samples for metallurgical testing to determine optimal ways of processing the material.

Drilling continues at planned rates and the company remains on target to finalise the 20,000 metre drilling and sampling program within the second quarter of 2012.

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

In 2011, the former toy and gaming business exercised a call option with TGP Australia to acquire 100% of KCMH Australia, the holding company for KCM Nigeria.

Energio also acquired the remaining 25% of shares in KCM Nigeria from Bedford CP Nominees.

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.