WPG Resources' (ASX: WPG) return to the iron ore sector has started off on the right foot with early drilling results from the recently acquired Giffen Well project showing potential for iron mineralisation.
Three holes of a 15-hole reverse circulation percussion and diamond drilling program have now been completed.
The three holes were drilled on an east to west section sited on the northern end of the main magnetite banded iron formation zone.
Highly weathered limonite-goethite material, which has the potential to be enriched in iron content, was intersected in the upper oxide zone between 18 and 46 metres in one hole and between 26 and 30 metres in another hole.
The results from the current drilling program will form part of the preliminary Feasibility Study that WPG has already begun at Giffen Well.
In January this year WPG solidified its re-entry into the iron ore market, signing an agreement with Brisbane-based Maosen Australia for the iron ore rights covering EL 3945 at Giffen Well.
The geological setting of the project bears similarities to that at OneSteel's (ASX: OST) Peculiar Knob iron ore project, where high grade massive hematite is located adjacent to Hiltaba aplite and granite in the footwall.
A defining factor of the project is that these contact zones have the potential for the discovery of direct shipping ore haematite orebodies such as that at Peculiar Knob and Buzzard at Hawks Nest.
The company had been trying to get access to Giffen Well since 2008, with executive chairman Bob Duffin telling Proactive Investors that it is a first class prospect.
Access to WPG-owned infrastructure
Giffen Well is located south of Coober Pedy in South Australia, just 25 kilometres from the Carnes siding on the Central Australian railway line.
Importantly, WPG held on to its port assets at Port Pirie, which can be easily utilised for the export of iron ore products from Giffen Well.
There is direct rail access to WPG's port facilities at Port Pirie, a distance by rail of 550 kilometres.