Published on Monday 6th Sept 2010
Southern Uranium - ASX(SNU)
Southern Uranium has located new high-grade iron outcrops that further advance the iron ore prospects of the company’s Jungle Dam project on the Eyre Peninsula of South Australia.
New prospecting, detailed magnetic surveying and a revised prospectivity model have upgraded the potential for shallow haematite as Direct Shipping Ore.
Rock chip samples assayed 55.5% to 59.6% iron from limited outcrops within 2km-long magnetic zone.
John Anderson, managing director, said Southern Uranium has revised its strategy at Jungle Dam to focus on the potential for higher grade and shallow haematite as DSO and plans to commence drilling of highpriority areas at the earliest opportunity.
The company’s objective is to determine whether an iron ore resource could be established to Inferred Category by early 2011.
“Our prospecting located new high-grade outcrops of iron formation assaying from 55% to nearly 60% iron within a large magnetic zone named Central West,” Anderson said.
“This significantly increases the prospectivity for shallow high-grade haematite at Jungle Dam."
“The new magnetic data maps the Central West Zone as a fold nose where the outcropping high iron grades and interpreted thicknesses indicate the original iron formation is structurally enhanced.”
“In contrast, our initial drilling along the less disrupted iron formation in the Central Zone to the east showed grades of 20 to 40% iron and horizontal widths of up to 45 metres. Importantly, that drilling demonstrated that a 70m thick weathered blanket of higher-grade haematite overlies the primary magnetite iron formation.”
The higher outcropping iron grades have refocussed Southern Uranium’s exploration on the Central West Zone and other similar magnetic zones showing structural complexity.
These areas have excellent potential for shallow high-grade haematite. Preliminary modelling of the new magnetic data at Central West indicates the weathered haematite blanket extends to 100m depth beneath the outcrops.
“Southern Uranium is preparing to do a detailed gravity survey over the Central West zone to better map the haematite-prospective areas,” Anderson said.
“This will assist the prioritisation of targets for the next round of drilling planned to start as soon as a drill contractor is secured.”
The Jungle Dam iron ore project is held 100% by Southern Uranium under Exploration Licence 3479 “Lake Gilles” on east Eyre Peninsula. Over 14km of prospective iron formation are delineated by magnetics to extend south of the Hercules iron ore resource held by another company.
The geological sequence is correlated with the Middleback iron formation at the OneSteel (ASX: OST) mining operations situated about 50km to the southeast of Jungle Dam.
Three new prospective and undrilled zones are interpreted to lie within the same structural corridor containing the Wilcherry Hill skarn magnetite deposits and Weednanna gold deposit held by another company to the northwest.
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