Fenix Resources Limited (ASX: FEX) announced on 19th March 2019 about a significant Upgrade to the Iron Ridge Mineral Resource. The company received the results of a Mineral Resource estimate which included the results from the recent drilling completed by the company at its flagship Iron Ridge Project, which is in the Mid-West region of Western Australia.
The Mineral resources were further classified into Indicated and Inferred mineral resources. The company reported an Indicated resource of 6.6 million tonnes with a grade of 64.5% Fe, 2.51% Aluminium trioxide, 1.74% LOI, 0.042% P, 3.14% Silicon dioxide and 0.09% Titanium dioxide.
The company reported an Inferred resources of 2.6 million tonnes with a grade of 63.2% Fe, 3.04% Aluminium trioxide, 2.13 LOI, 0.054% P, 3.93% Silicon dioxide and 0.12% Titanium dioxide.
The combination of the classified resources led to the total mineral resource of 9.2 million tonnes with a grade of 64.1% Fe, 2.66% Aluminium trioxide, 1.85 LOI, 0.045% P, 3.363% Silicon dioxide and 0.10% Titanium dioxide.
The company classified the Indicated and Inferred resources on the basis of the stratigraphy of the rock layer (strata).
The Indicated resources were classified into a Main Banded Iron formation (BIF) of 5.9 million tonnes with a grade of 65.0% Fe, 2.38% Aluminium trioxide, 1.36% LOI, 0.038% P, 2.92% Silicon dioxide and 0.09% Titanium dioxide and Little BIF.
The Little BIF included 0.7 million tonnes with a grade of 60.0% Fe, 3.60% Aluminium trioxide, 5.05% LOI, 0.072% P, 5.05% Silicon dioxide and 0.09% Titanium dioxide.
The Inferred resources were also classified based upon the Banned Iron Formation (BIF) into Main BIF and Little BIF.
The Inferred resource Main BIF reported at 2.3 million tonnes with a grade of 63.8% Fe, 2.95% Aluminium trioxide, 1.68%LOI, 0.050% P, 3.68% Silicon dioxide and 0.12% Titanium dioxide.
The Inferred resource Little BIF reported at 0.3 million tonnes with a grade of 59.3% Fe, 3.67% Aluminium trioxide, 5.43%LOI, 0.083% P, 5.75% Silicon dioxide and 0.09% Titanium dioxide.
The company’s 72% of the total mineral resources were in the Indicated category which places the company in the position of capital-light development plan to bring the project into production.
The recent drilling undertaken by the company revealed that the mineralisation envelope extends to the southwest along strike. At 230m beneath the surface marked the deepest intersected mineralisation. The company recorded the high-grade in the Main BIF, which can be seen from the inferred results. As per the company, it sees no issue with the processing of these minerals as preliminary observations indicate that only crushing and screening will be required to produce a good quality Direct Ship Ore (DSO) product.
The company now plans to start with the feasibility study and starts the process of conducting preliminary open pit plans and the necessary geotechnical work.
The company’s securities were put on a trading halt on 15th March 2019 due to a pending announcement which the company made on 19th March. The company faced a similar halt previously on 22nd January 2019.
The trading of the shares is now resumed, and during the time of writing this report, the company’s stock closed the day’s trading at A$0.064 (as on 19th Match 2019), down by 13.51% as compared to its previous close.
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