Shares in emerging iron ore developer FerrAus (ASX: FRS) reacted strongly after the company delivered further exploration success at its East Pilbara exploration project, continuing the flow of high grade Direct Shipping Ore results from its Davidson Creek area.
By 2.22pm, shares in the company had shot up almost 10% to 89c.
The Mirrin Mirrin Prospect is located two kilometres north west from Python Resource and is the closest of the FerrAus prospects to the Jimblebar rail head, approximately 30 kilometres to the west.
The initial identification of the Mirrin Mirrin mineralised trend was announced in August 2009 after an 18 hole drill program. A further 39 RC drill holes, completed towards the end of 2009 for a total of 5,556 metres, outlined iron mineralisation over a strike length of 800m.
Managing Director Mike Amundsen said this new resource, together with updated results from other areas drilled in the fourth quarter of 2009, was expected to be announced during the next month.
“We are seeing a rebound in iron ore demand and spot prices, as well as strong customer interest and support in new emerging projects with substantive resources,” he said.
“In recent months we have received visits from major Asian steel mills expressing interest in FerrAus.
“We have already identified more than 166 million tonnes* in total resources, concentrated within a 20 kilometre radius and have just commenced an aggressive drilling program for 2010."
The Mirrin Mirrin Prospect has a mineralised trend of some three kilometres strike extent and is still open to the east, west and down dip. This drilling also intersected zones of detrital ore, which have not been closed off.
Results from this drilling program, covering approximately one third of the total Mirrin Mirrin mineralisation trend, will form the basis for a maiden resource.
Further drilling on the remainder of the Mirrin Mirrin trend is planned for the second quarter of 2010.
Disclosure: The author holds no positions in the company