Activities review
Flinders reached an agreement with Cazaly Iron Pty Ltd (Cazaly), a 100% owned subsidiary of Cazaly Resources Limited, to purchase Exploration Licence E47/1560 for a total consideration of $750,000 in cash and $750,000 worth of Flinders shares. The tenement is a granted exploration licence located about 15 km to the southwest of Flinders’ Hamersley E47/882 in Western Australia.
Following a detailed assessment of the geology of the area, Flinders has determined it is highly prospective for both CID and DID which show some similarities to those recently located in E47/882 (by Flinders mapping and sampling) and in E47/1306 (by Fortescue Metals Group drilling).
Terrain in the area consists of the Hamersley Ranges, composed of Brockman Iron Formation, and intervening valleys, often containing channel iron deposits (CIDs). E47/1506 has an area of 44 sq km of which about 16 km sq consists of valley systems and has the potential to host CIDs.
Flinders contracted Dr Richard Russell, who carried out similar work on E47/882, to carry out a geological mapping and prospectivity analysis of E47/1560. An Exploration Target for Anvil
of 121-164Mt at 45-60% Fe was calculated.
Drilling commenced in July 2009 on E47/1560 (Anvil), targeting both channel iron deposit (CID) and bedded iron deposit (BID) mineralisation with the aim of defining an Inferred Resource.
Anvil – Inferred resource drilling
A total of 240 RC holes has been completed at Anvil at a spacing of 400m by 200m. This will allow an Inferred Resource to be estimated. Returned assays and visual estimates from drilling indicate that iron mineralisation is not as extensive as at Blacksmith (E47/882), but does include both channel iron deposit (CID) and bedded iron deposit (BID) styles of mineralisation. Interpretation of drill and assay data and estimation of an Inferred Resource can then proceed.
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