Successful Iron Ore Exploration

Evaluation of the Project area, located south-west of Pannawonica (Figure 1), commenced in late 2005 targeting Channel Iron Deposits (CID) which are commonly referred to as pisolites.

A substantial exploration programme is ongoing with approximately 500 million tonnes of iron ore resources having been identified to date. This comprises 585.68 million tonnes (Table 1) of CIDs within the Project area and also 62.9 million tonnes (Table 2) of Bedded Iron Deposits (BID) within the Hardey Project area, located 50 km west north-west of Paraburdoo.

The CID resource base is the foundation of the first stage of the Project area. CIDs are now evolving as a more significant ore source and form a large proportion of the recent expansion of the Pilbara iron ore industry. Subsequent phases of the project will draw on iron ore resources API is confident of identifying at other areas within its extensive tenement portfolio, including the east Pilbara.

 

Table 1: West Pilbara Iron Ore Project Resource Statement (Channel Iron Deposits)
Category Tonnes (million) Fe % SiO2 % Al2O3 % P % S % LOI %
Measured 74.89 57.56 5.62 3.34 0.085 0.018 8.14
Indicated 328.54 56.47 5.27 3.71 0.060 0.016 8.51
Inferred 182.25 56.23 6.12 3.70 0.062 0.016 9.08
TOTAL 585.68 56.54 6.08 3.62 0.066 0.017 8.78

 

Table 2: West Pilbara Iron Ore Project Resource Statement (Bedded Iron Deposit)
Category Tonnes (million) Fe % SiO2 % Al2O3 % P % S % LOI %
Indicated 19.8 61.24 3.66 2.66 0.128 0.01 5.69
Inferred 43.1 61.38 3.82 2.44 0.123 0.01 5.56
TOTAL 62.9 61.33 3.77 2.51 0.125 0.01 5.60