Iron Road has begun the phase VII drill program to the eastern part and along the strike length of the Murphy South.
The company has drilled more than 34,000 m, totaling 81 diamond drill holes. Two diamond service rigs will be primarily utilized for drilling the NQ2 core. This target of the phase VII exploration program comprises 400-700 Mt of magnetite gneiss.
Plan view of CEIP Boo-Loo, Murphy South and Rob Roy Stage VII Resource drilling programme. Murphy South Stage VI drilling programme is complete and resource modelling by Coffey Mining has commenced.
Primary Industries and Resources South Australia (PIRSA) permitted the drilling of 46 holes out of 81 holes in June 2011 and also included the phase VII drill campaign at Rob Roy. The company will drill the remaining 35 holes within or contiguous to a Vegetation Heritage Agreement region and these holes are the focus for a Declaration of Environmental Factors, which is needed under the licence orders.
As the phase VI geotechnical drilling and resource extension program to the Murphy South’s western part is completed, the company has started the phase VII drill campaign.
Iron Road has begun the mineral resource calculation for phase VI drill program, conducted to the western part and along the strike of Murphy South and is anticipating completion by this year end.
The range of the individual diamond drill holes is from 100 to 600 m in depth, along with drilling on a grid of 200 x 100 m area. This drill will identify the Murphy South ore body’s east expansion over a region of having thickness and length of around 800 m and 2000 m, respectively.
The prefeasibility study of the company for the CEIP showed a base case net present value of $1.1 billion for this drilling project. According to the study, further resource addition has the capability to considerably lift the project NPV.