Forrestania Resources Ltd (ASX:FRS) has obtained a 3-month option to drill test several iron ore targets owned by Netley Minerals Pty Ltd with an eye to acquiring the company and its rights to explore and mine iron ore in Western Australia’s Yilgarn region.
The tenements are immediately adjacent to Minerals Resources’ Koolyanobbing Iron Ore operations, which have been operating since the 1950s and consistently produced grades of 68-62% Fe (iron) over the life of the mine.
During the option period, FRS will drill test several iron ore targets identified by Netley, completing at least 10 reverse circulation (RC) holes to a depth of 90-150 metres.
"Near-term opportunity"
“This is a compelling opportunity to explore for hematite in an ideal location with abundant existing infrastructure,” Forrestania Resources chair John Hannaford said.
“The option allows us to drill-test the targets extensively prior to exercising, so we can validate the significant iron ore targets modelled by the vendors.
“If the drilling during the option period proves successful, then following exercise of the option we can proceed directly with the drill out of several substantial iron ore targets.
“This opportunity provides shareholders with a near-term advanced opportunity with significant scale potential.
“The location is close to our Southern Cross and Forrestania areas, and provides an immediate drilling opportunity, with significant upside.”
Heritage surveys
Heritage surveys are now underway ahead of the planned drilling, as FRS has already obtained approval for a Program of Works.
The company will target areas identified with a combination of portable x-ray fluorescence (pXRF) soil analysis, magnetic surveys and rock chip samples, all of which indicate a geophysical banded iron formation (BIF) trend and the potential for mineralisation.
Forrestania says the area is well positioned for an economical iron ore discovery, being close to road, rail and port infrastructure and service centres.