Fenix on fire as latest drilling results send its share price soaring
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Special Report: A Fenix is on the rise, as its latest high-grade drilling results put a rocket under the explorer’s share price.
Fenix has announced more high-grade results from its flagship Iron Ridge project in Western Australia as iron ore prices continue to surge.
The news sent the share price up an astronomical 164 per cent before lunch Wednesday, hitting 5.8c.
Fenix (ASX:FEX) has undertaken 5500m of drilling at its flagship Iron Ridge project, 600km north-northeast of Perth.
The drill program focused on the hematite zone in the Main BIF, which boasts very high iron grades and low impurities.
High grade iron ore with low impurities fetches a significant premium from buyers.
The latest results show more consistent high grades, with nine separate intercepts of between 20m and 70m grading more than 64.8 per cent.
This is in addition to the two wide, high-grade intercepts of 46m grading 66.3 per cent iron ore, announced last week.
High grade intercepts underneath the existing known resource. (Supplied)
The Iron Ridge project has an existing Inferred resource of 5 million tonnes at 64.1 per cent iron.
Fenix’s goal is to increase the resource, while maintaining a grade higher than the 62 per cent benchmark level for iron ore — which is a challenge even for the bigger players such as BHP (ASX:BHP) and Rio Tinto (ASX:RIO).
65 per cent is premium grade product, and which Fenix will look to sell at premium prices.
Fenix also wants to raise the confidence level of the mineral resource to the “indicated” category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
Fenix told investors that it is waiting for the assay results for all of the 297 diamond core samples, which will be used for metallurgical and geotechnical testwork.
The results from the metallurgical testwork are due in February, while a new Mineral Resource will follow in March.