That’s two DSO iron ore resources in CuFe’s hands. Pic via Getty Images.
CuFe now has more DSO quality iron ore up its sleeves
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CuFe has added a second direct shipping ore (DSO) ready iron ore resource to its portfolio with the definition of a maiden Mineral Resource at its 50%-owned Yarram project in the Northern Territory.
Just days after increasing its interest in the iron rights at the JWD mine in Western Australia from 60% to 100%, the company has outlined an Inferred Resource of 12.7Mt grading 55.4% iron at the Yarram project in the Batchelor region.
Notably, this resource is contained within two deposits, the shallow low grade Captain Morgan lateritic deposit and the high-grade Kraken replacement-style deposit which includes a high-grade DSO quality core totalling 5.6Mt at 60.4% iron.
CuFe (ASX:CUF) based the resource on data from four drilling campaigns – two historical campaigns by Territory Iron in 2005 and 2014, one by CuFe in 2021 and another in 2022.
“This Maiden JORC Inferred Mineral Resource for the Yarram Project confirms the presence of a well-located significant occurrence of high-grade direct shipping quality iron ore, along with an inventory of lower grade material which will investigate the ability to upgrade on site or direct ship for beneficiation in overseas markets,” executive director Mark Hancock said.
“We now have a clear picture of the scale and quality of the deposit and can concentrate on progressing development options and regulatory approvals as well as executing the next wave of work to improve the orebody knowledge and confidence level in the newly defined resource.”
He added that the company was drawn to the project’s proximity to Darwin Port (110km) and nearby infrastructure, which is expected to result in low haulage and port costs that are typically the key challenges for smaller iron ore projects.
Yarram project
The Yarram project is located immediately north of the town of Batchelor and sits across a mining lease and two exploration leases.
The underlying tenure is owned by Northern Territories Resources Pty Ltd, with CuFe holding a 50% share and management rights of Gold Valley Iron and Manganese Pty Ltd, which has the exclusive rights to iron ore on the tenements under a heads of agreement established in 2004.
Both Kraken and Captain Morgan are hosted within the Coomalie Dolostone of the Mount Partridge Group and have been observed to host two distinct types of iron ore enrichment.
The thinner lower grade enriched goethite-hematite mix lateritic duricrust is flat lying and forms along the topographic highs of the deposit areas while the deeper higher grade hematite replacement style enrichment hosted within the highly weathered brecciated siltstone is the dominant style of mineralisation at both deposits.
This enriched siltstone is generally flat lying and more prominent at Kraken.
Next steps
CuFe intends to progress several work streams to further develop its knowledge of the Yarram ore body.
It is planning a drill program to start after the wet season that will likely include diamond drilling for metallurgical, density and geotechnical test work.
Mine studies have also started that will incorporate the results of the low-grade bulk samples that are currently being analysed in a metallurgical laboratory while environmental baseline data collection and engagement with the Traditional Owners have also started.
This article was developed in collaboration with CuFe Ltd (ASX:CUF), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
