Perth, Feb 19, 2009 AEST (ABN Newswire) - Emergent Resources Limited (ASX:EMG) is pleased to announce excellent results from its maiden drilling program at the company's flagship Beyondie Iron Project.
Emergent's Managing Director, Garry Hemming, said "For such a recently listed small-cap company this is very exciting in light of the potential to advance to large scale production. The scale of the deposit, quality of the magnetite, expected low waste;ore stripping ratio and grainsize characteristics provide a preliminary indication of favorable cost structure for mining and processing."
The Company plans to develop the Beyondie Iron Project into a long life magnetite concentrate mining operation similar to others developing in the region. Emergent has the right to earn up to an 80% interest at the project in a joint venture with De Grey Mining Limited.
Emergent is of the view that there will be strong demand for magnetite in the future due to the diminishing grade of hematite mines in the Pilbara of Western Australia and in Brazil, and corresponding increasing impurities.
The Beyondie Project is located north of the developing Mid West Iron Province of Western Australia, immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline. Potential shared rail and port infrastructure developments are in progress.
Magnetite versus Hematite
Magnetite occurs in lower grade deposits than hematite however is beneficiated to a high grade concentrate which is sought after for Direct Reduction (DR) feed in the smelting process. It has very low impurities (minimizes disruption to smelting) and DR does not require coking coal. It attracts a premium price.
Details of the Drilling
E52/1806, ELA52/2215 (EMG earning 80%)
Emergent completed a maiden drilling program comprising 21 Reverse Circulation (RC) holes totalling 2210 metres during the December 2008 quarter and analytical results have just been received for most of the drill holes. A series of 3 thick, east striking Banded Iron Formation (BIF) horizons were drill tested over a 12 kilometre strike length, a small portion of the total 45 kilometre strike of the BIF sequence.
Traverse and collar locations were planned utilising EMG's recently acquired detailed airborne magnetic data. Each drill traverse comprises several holes spaced at 50 to 100 metres. Five hundred and fourteen (514) two metre composite samples were submitted to Ultra Trace Geoanalytical Laboratories in Perth for a suite including Fe, Al, Si, P, S, Mn, Ti, K, Mg, Na, and LOI.
The drilling confirmed the remarkable thicknesses and consistency of the magnetite schist horizons (BMS). Geophysical modelling, completed by geophysicists, Resource Potentials Pty Ltd, suggests an average width to each band of up to 140 metres. The extraordinary widths and the horizons moderate dip, of approximately 30 to 40o to the north-west, is optimal for low strip ratio in an open cut mine.
Work is continuing with engineers and metallurgists on a desk top Business Plan prior to proceeding with a Pre-scoping study which includes work on the geological modelling of the magnetite horizons (supported by the geophysical models); metallurgy; process and engineering aspects, transport options, and approvals on environment, government, and community issues.
Contact
Garry Hemming
Managing Director
Emergent Resources
Tel: +61-419-835-757
Email: ghem@westnet.com.au
Web: www.emergentresources.com.au
James Moses
Media and Investor Relations
Tel: +61-420-991-574
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