Reedy Lagoon says the final report of a CSIRO study of its Burracoppin magnetite deposit in Western Australia has led to the delivery of a new method for measuring the iron content of magnetite deposits known as “Mag Resource”. The deposit is part of the company’s larger Burracoppin iron project, where the explorer aims to produce “pig iron”, an intermediate iron product.
According to Reedy, CSIRO’s work laid the groundwork to establish Burracoppin as a solid source of iron.
MagResource’s calculation process uses the density and magnetic characteristics of magnetite to develop a linear connection with iron content, which can then be used to determine the volume of iron contained in a deposit.
The investigation involved the collection of new data from a review of drill core acquired at the operation. CSIRO then analyzed samples of the drill core to establish the magnetic, density, geochemical, mineralogical and structural characteristics of the material.
The data was then used to guide the modeling of airborne magnetic data captured in 2011 and reprocessed by CSIRO.
The process led to the delivery of three-dimensional models reflecting potential magnetite mineralization in terms of location and intensity.
Management says it has used the research results to establish a conceptual exploration target of 240 to 300 million tonnes at 20 to 25 percent iron from Burracoppin.
The three-dimensional character and spatial geometry of his target allow Reedy to design a drilling campaign to assess the accuracy of the method and define a mineral resource estimate more efficiently and quickly.
The company says it plans to drill holes initially to test exploration targets where there is overlap in interpretive data.
Currently, establishing the metal grade of a given deposit is an expensive process that requires a company to dig myriad holes in a potential resource. The results of the program are then inferred throughout the duration of the project using statistical methods.
Reedy says his new process is faster, more economical and, most importantly, almost entirely non-invasive, reducing both environmental impacts and costly expenses typical of early-stage mineral exploration.
The company is now looking to embark on further drilling at the Burracoppin magnetite deposit to confirm its findings and help refine its MagResource method.
The development of MagResource was made possible by CSIRO’s Kick-Start programme, an initiative providing funding and research expertise for innovative Australian companies.
With the dwindling discovery of hematite-based iron ore resources lately, the market may soon turn to lower-grade magnetite resources to fill the supply gap and with a series of heavy hitters, including Twiggy Forrest, Gina Rinehart and Chris Ellison of Mineral Resources. in the lodestone space, the future looks bright for commodities.
There is still a long way to go, but if CSIRO can convince the JORC code to integrate its revolutionary new targeting method into its resource calculation methods, it could enter the race for companies with huge amounts of magnetite-based iron ore such as Reedy Lagoon.
Meanwhile, at its Alkali Lake North lithium project in Nevada, Reedy has confirmed that one of the company’s strongest conductors is within its borders.
According to the company, work in the last quarter also allowed it to move towards a major tube-shaped target that straddles the project’s eastern quarters.
Reedy says he now plans to carry out additional geophysical surveys to aid in the selection of drill targets and allow him to test a series of flat aquifers identified in previous work.
The company argues that the presence of anomalies and shallow seismic reflectors in a basin structure are strong indicators that it has a significant brine aquifer system at Alkali Lake North.
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