Sundance
Resources Limited (ASX: SDL)
ASX/MEDIA RELEASE
16 APRIL 2008
EXPLORATION UPDATE – MBALAM IRON ORE PROJECT
SUNDANCE CONFIRMS POTENTIAL OF MBARGA DEPOSIT TO HOST +1 BILLION TONNES
OF DSO/ITABIRITE IRON ORE
International
iron ore company Sundance
Resources Limited (ASX: SDL – “Sundance”) is pleased
to report that drilling has confirmed the potential of its 90%-owned Mbalam
Iron Ore Project in Cameroon, West Africa to host an iron ore resource in
excess of 1 billion tonnes.
Drilling
at the Mbarga Deposit has defined two styles of hematite mineralisation –
supergene Direct Shipping Ore
(“DSO”) from surface underlain by massive itabirite hematite
mineralisation to significant depth.
Latest
geological modelling (non JORC-Code compliant) of the Mbarga Deposit has
outlined the potential for 1.0 – 1.2 billion tonnes itabirite-style
mineralisation at an average grade of approximately 39% Fe. This is based
on all assay data received from the areas drilled to date including laboratory
assays and data obtained using site hand-held XRF instrumentation. This site
XRF data is progressively being verified by laboratory assay work.
The
itabirite material comprises banded hematite-quartz with very low phosphorous
(~0.03%) and alumina (~1.5%) contents. As previously reported, very preliminary
testwork on a small number of selected samples of the Mbarga itabirite material
has indicated that the itabirite may be beneficiated to produce a +65% Fe
concentrate utilising conventional beneficiation plant similar to that used for
upgrading of itabirite iron ores in Brazil. A bulk sample of drill core is
currently being air freighted to Perth
for more comprehensive beneficiation testing.
The
geological modelling has also updated the potential Direct Shipping Ore (DSO)
tonnage from the Mbarga Deposit. Latest estimates range from 100 to 140
million tonnes hematite at an average grade of approximately 60% Fe, 0.09%
P and 3.4% Al2O3.
Drilling
of both the DSO and itabirite ore horizons is continuing on the Mbarga Deposit
utilising five of the six drill rigs operating on site. Surface and structural
mapping gives reasonable confidence that definition of the itabirite tonnage
will increase significantly with additional drilling. The Company will
progressively step-out drilling over coming months to test the potential of
other prospects on Exploration Permit 92 with these latest results resulting in
the Company’s objectives for the Mbalam Iron Ore Project being reviewed
with definition of an overall Exploration Target of 2.0-2.5 billion tonnes
of itabirite-style mineralisation.
The
latest geological modelling represents a significant step forward for the
Company, confirming the potential for the Mbarga Deposit to support an integrated
35 Mtpa DSO/itabirite operation. This target is subject to completion of
infill drilling to confirm a JORC-Code compliant resource and positive results
from ongoing beneficiation testwork. At this stage,
this remains a production target with any potential or assumed ore quantity and
grade being conceptual in nature with insufficient results received from
exploration completed to date to estimate a Mineral Resource compliant with the
JORC Code (2004) guidelines. Furthermore, it is uncertain if exploration will
result in the determination of a Mineral Resource sufficient to meet this
assumed production target.
Sundance’s
CEO Don Lewis said: “Our exploration efforts at Mbalam are starting to
show significant results. We have outlined potential for a +1 billion tonne
DSO/itabirite iron ore resource on the Mbarga Deposit within six months of the
Company reporting its first drilling results.”
“The
project could be similar in scale to some of the large iron ore projects in the
Minas Gerais area of Brazil,
which includes the Minas-Rio project being developed by MMX Mineraceo e
Metallicos. That project has a target production capacity of 26.5 million
tonnes hematite concentrate per annum, commencing in 2010, based on upgrading
itabirite ore (~40% Fe) through conventional grinding and reverse flotation
beneficiation plant.”
“We
believe that the itabirite projects in Brazil represent a useful benchmark
for development of the emerging potential of the Mbalam Project. Significant
DSO mineralisation in addition to a potentially world scale itabirite resource
provides significant development flexibility and would allow low cost
production in the early years of operation. The nature of the Mbarga Deposit,
with mineralisation from surface, should allow very efficient mining, with low
stripping ratios for both DSO and itabirite ore,” Mr Lewis added.
Grant
of New Exploration Permit in Cameroon
The
Company is also pleased to announce that it has secured a significant new
Exploration Permit located immediately adjacent to Exploration Permit No. 92
(“EP92”) in support of the Mbalam Iron Ore Project. This more than
doubles the existing landholding held by Camiron SA, the Company’s 90%
owned subsidiary, in Cameroon.
The
new permit covers an area of approximately 1,000km2 in south-east Cameroon.
The permit area lies immediately east of the defined mineralization on EP92 and
contains a number of topographic features similar to those identified in the
existing exploration permit. The Company’s geological team believes that
the new permit area may be prospective for hematite mineralization similar to
that defined in EP92.
The
new permit represents a significant addition to Sundance’s exploration
portfolio in Cameroon,
consolidating its strategic position in this emerging iron ore province.
The
Company will incorporate the new permit area into an expanded regional
exploration program designed to deliver future drilling targets alongside its
current focus of activity at Mbalam. The Company believes that this represents
an opportunity to add significant value to the Company
ENDS
Released by:
|
On behalf of:
|
Nicholas Read
Telephone: (+61-8) 9388-1474 / +61-419 929 046
|
Don
Lewis, Managing Director /
Michael
Weir, Investor Relations Manager
(+61-8) 9220-2300 /+61-417 996 005
|
Read Corporate
|
Web:
www.sundanceresources.com.au
|
Competent
Persons Statement
The
information in this release that relates to Exploration Results is based on
information compiled by Mr Robin Longley
who is a Member of the Australian Institute of Geoscientists. Mr Longley
is a full time consultant of the Company and has sufficient experience which is
relevant to the style of mineralisation and type of deposit and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Mr Longley consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears.
The potential quantity and grade of near-surface supergene
mineralization and underlying itabirite-style mineralization has been
restricted to the area currently covered by drilling on a 400m x 100m pattern
at Mbarga. This is represented by an area approximately 3km (east-west) x 2.5km
(north-south). Grade interpolation has been extrapolated using inverse distance
squared method on composited sample results and a nominal 50% Fe cutoff value
for DSO and 30% cutoff value for itabirite ore. A digital terrain surface
(based on highly accurate topographic data), has been used to limit
extrapolation of the mineralization to the topographic hill at Mbarga. An
internal waste zone (schist) cross-cutting the itabirite and supergene zones
and surficial cover has been modeled and removed from the quantity estimated as
potential DSO and itabirite mineralization. Nominal densities of 4.0t/m3 and
3.35t/m3 have been applied for preliminary evaluation of the DSO and itabirite
mineralization respectively.
It must be noted that at this stage, the potential quantities and
grades mentioned in this release are conceptual in nature and there has been
insufficient results received from drilling completed to date to estimate a
Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore,
it is uncertain if further exploration will result in the determination of a
Mineral Resource.
READ CORPORATE
Public Relations
Corporate Communications
T: (+61-8) 9388-1474
| F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au