Magnetite-focussed explorer and developer, Apollo Minerals (ASX Code: AON) commenced work today on assessing the exploration potential for iron at its 100% held Commonwealth Hill Project located in South Australia’s Gawler Craton.
Apollo's flagship project is the Mt Oscar magnetite project in the Pilbara, Western Australia.
Results from recent target generative work, with combined with earlier exploration data covering the Commonwealth Hill tenements located in north western South Australia, are being assessed.
The objective is to commission resource-definition and discovery drilling programs.
Geophysical modelling of data from the recent detailed ground magnetic and gravity surveys has identified over seven new iron targets at Commonwealth Hill.
With the exception of anomaly 8 (Sequoia) which is the only prospect with outcropping banded iron formation (NYSE:BIF), modelling suggests that the depth-to-top of unweathered magnetite generally ranges from about 30 to 80 metres.
The eight anomalies are essentially of two types:
- Linear anomalies (five) which may represent banded iron formation and/or magnetite in schist or gneiss; and
- Circular more discrete anomalies (three) which may represent small basic intrusions or pipe-like bodies containing magnetite that are less likely to have significant iron ore potential but may have base metal and/or gold potential.
Anomaly 8 is the Sequoia Prospect where the SA Geological Survey undertook ground magnetics surveys, drilled eight angled RC holes and one angled diamond hole and completed metallurgical testwork in 1995.
Drilling at Anomaly 8 was insufficient for the estimation of a JORC compliant resource estimate.
Magnetite mineralisation was confirmed, comprising several steeply dipping laterally discontinuous magnetite-BIF layers from 2 to 50 metres wide, and which extends below a weathering surface of around 45 metres.
Metallurgical testwork undertaken by Amdel Limited Mineral Processing Services at the Sequoia Iron Project drilled by South Australian Geological Survey was found to be readily beneficiated to concentrates grading 70.3% iron.
The final grind produced material of which 80% was less than 63 microns.
Indicating very encouraging results ascribed to the coarse grain size of what is assumed to be a highly metamorphosed BIF.
Apollo intends to undertake further resource definition drilling at Sequoia and conduct discovery drilling on the remaining geophysical anomalies including Ibis.
The objective is to ultimately define sufficient resources and reserves from one or more sources to support a stand-alone magnetite treatment plant - capable of producing saleable-grade concentrates for export.
Disclosure: The author holds no positions in the company