Perth, April 8, 2008 AEST (ABN Newswire) - Territory Resources (ASX: TTY) announced today it has committed to spend $25 million over the next two years with the aim of substantially expanding its high grade resource base and extend mine life at the Frances Creek iron ore project.
Territory Resources Chairman Michael Kiernan said the Company was focused on delivering a steady increase in production at Frances Creek, backed by substantial exploration of largely under-explored areas.
"The immediate focus of exploration is the expansion of near-mine reserves and resources including the areas adjacent to the known deposits," Mr Kiernan said.
"A budget of $12 million including in excess of 100,000m of RC drilling, has been approved for the 2008 calendar year, with three drilling rigs engaged to undertake the works.
"The sustainability of exploration drilling during the wet season will be boosted by the introduction of a track mounted RC drilling rig later in the year."
Frances Creek currently has 5mt of reserves @ 61.3% Fe, with indicated and inferred resources of 10.1mt @ 60.47% Fe.
Mr Kiernan said Frances Creek has significant areas that have been largely unexplored by modern techniques, including 12 - 14 km of strike which would be targeted through the current program.
The northern tenements at Frances Creek contain significant potential for further discovery. The tenements lie on the northern extension of the Frances Creek structure, and sporadic outcrops exist along the structure with minimal work has been completed on the tenements to date.
"The style of mineralisation in the region tends to be under modest cover, and therefore has remained generally unexplored and undiscovered," Mr Kiernan said.
"Having taken Frances Creek into production, our aim has been to use cashflow to realise the significant production expansion opportunities," Mr Kiernan said.
"Our strategy is to discover, dig and deliver as much as possible over the coming three years, capitalise on the strength in the iron ore market and develop future earning streams," he said. To drive its comprehensive exploration program, Territory has recently appointed Ian Hassall as Exploration Manager. Ian has considerable iron ore experience in the Pilbara, both as a mine geologist and in exploration. His experience includes various iron ore deposition styles including Brockman, Marra Mamba, Nimingarra and pisolite iron deposits.
Territory has also undertaken a complete review of the available geological information from current and historical records for Frances Creek, including collation of all geophysical, mine geology and drilling information.
A helicopter-borne, electromagnetic survey and a multi-spectral survey were conducted late in 2007, and results from these are being incorporated in the proposed exploration programme. A structural study of the mine-site and adjacent areas is also planned to generate further understanding of the geological controls, especially in relation to the fold closures and hinge areas of the structure.
"Incorporation of historical data, combined with our recent electromagnetic survey results and will underpin Territory's drilling program over the next twelve months," Mr Kiernan said.
Contact
Michael Kiernan
Chairman
Tel: +61 (0) 8 9324 7000
Mob: +61 (0)418 904 165
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