PERTH (miningweekly.com) – Junior Fe Limited will acquire a 50% interest in the Yarram iron-ore project, in the Northern Territory, and will act as operator for the joint venture (JV).
The company on Friday said that it would pay A$1.5-million in cash and shares, along with a further A$500 000 in cash and A$1-million in either cash or shares, which would become payable on the definition of a Joint Ore Reserves Committee-compliant resource.
FEL will also cover certain historical and future costs.
“With iron-ore prices at six-year highs, mature iron-ore assets such as we have identified at Yarram are highly sought after,” said Fe chairperson Tony Sage.
“It is even more difficult to find one that hosts high grade iron-ore mineralisation that’s just located over 100 km from a major port, and is in close proximity to existing mining infrastructure. We look forward to engaging with the stakeholders in the area and commencing a drilling campaign as soon as possible so we can further our understanding of the geology and examine how to move the project forward to capitalise on what is increasingly being considered by market analysis as a period of elevated iron-ore prices.”
Pending the successful completion of the acquisition, Fe is planning additional drilling for the fourth quarter, subject to obtaining the necessary approvals. The work will be used to validate the existing data and exploration targets, and to provide infill and extension drilling to support a resource estimation.
Based on previous drilling information, the project has an exploration target of four- to six-million tonnes, grading 60% to 62% iron.