Black Iron Inc. is reporting that the Dnepropetrovsk District Administrative Court has rendered a decision in favour of the Company in respect of a temporary suspension of activity order imposed by the Dnepropetrovsk Region Ecological Inspectorate.
The favourable ruling lifts the suspension order on drilling activity at Black Iron's Shymanivske Iron Ore Project in Kryiv Rih, Ukraine. Following receipt of the ruling, the Company will now apply for the required drilling permits and mobilize diamond drill rigs back to site in preparation for its first definition and exploration program.
Matt Simpson, President and CEO of Black Iron, commented, "We are excited by the favourable ruling received as it will pave the way for Black Iron to commence its first definition and exploration work program. This program has the potential to not only increase the overall size of the mineral deposit, but also upgrade the mineral categorization of the resource. Based on an increase in size to the mineral deposit, we would begin analyzing the potential to increase our projected annual production rate. An increase in annual production should significantly add to the project value."
The Shymanivske Iron Ore Project has an existing National Instrument ("NI") 43-101 compliant measured and indicated mineral resource containing 345 million tonnes grading 32% iron and an additional inferred mineral resource containing 469 million tonnes grading 31% iron. The initial definition and exploration drill program aims to increase the total size of the potential mineral deposit to 1.0 to 1.2 billion tonnes at a grade between 28% to 32% iron. The potential tonnage and grade are conceptual in nature, as there has been insufficient exploration to define an increased mineral resource and it is uncertain if further exploration will increase the mineral resource. These updated ranges for the potential mineral deposit tonnage and grade are reported as exploration targets based on the presence of known mineralized zones open along strike to the north and at depth based on results from the recently completed ground geophysical program.
George Mover, Chief Operating Officer of Black Iron, commented, "It is an exciting time for Black Iron as we expect this program will upgrade the categorization and add significant tonnage to our mineral resource estimate for the Shymanivske Project. Results from this program will be released on a regular basis and should result in an updated resource estimate in the second quarter of 2012."
Program Details
The initial definition and exploration drill program will consist of 20,000 meters of drilling, laboratory assays of core and updated independent resource estimate by Watts, Griffis and McOuat Limited in the second quarter of 2012. The drill program will commence with seven drills upon receipt of the necessary drilling permits and is expected to take five months to complete. Drilling will be directed at upgrading the inferred resource to measured and indicated as well as expanding the known mineralization to the north of the Shymanivske property and at depth across the deposit, targeting new areas outlined by the previously completed ground gravity survey.
Black Iron has engaged Ukraine-based GeoResources Limited to complete the drill program using modern equipment under the direction of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers, of Toronto, Canada, who are to ensure all field and laboratory work is conducted in compliance with National Instrument 43-101 standards and best practices guidelines.