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AP14 Magnetite Deposit – Andhra Pradesh

The AP14 project is located in the Karimnagar District of Andhra Pradesh State, approximately 200 km north east from the State capital of Hyderabad.  The local topography of the project area consists of five peaks which rise between 40m to 200m above the surrounding terrain which is at an elevation of around 190m above mean sea level.

The project area comprises upper Archean rock formations.  The target mineralisation consists of Banded Magnetite Quartzite (BMQ), which from surface mapping and geomagnetic surveys covers between 50% and 70% of the project area, and is seen as outcrop from the base to the top of the peaks.  Intrusions represented by granitic sills and dykes varying in width from 1m to 5m are present within the project area

During the approvals process the Company has continued to advance its understanding of the deposit, and has undertaken both physical and geomagnetic surveys, combined with sampling and Davis Tube Recovery test work through SGS India and under the guidance of its metallurgical consultants METS from Australia.

As a result of the above mentioned work programme, The exploration target has now been upgraded from a previous 62 million to 125 million tonnes to now be 134 million to 377 million tonnes of magnetite at grades ranging from 25% to 50% Fe.

Contained within this exploration target there exists potential for a high grade core of Direct Ship Ore (DSO) quality enriched magnetite, with estimates from 5 million to 10 million tonnes with a grade range from 55% to 65% Fe.

It should be noted that the exploration target quoted above is conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code. It is uncertain if further exploration will result in the determination of a Mineral Resource.

Metallurgical testing based on Davis Tube Recovery (DTR) methods of 25 surface grab samples provided the following averages for recovery (using a 75 micron grind size), head grade and concentrate grade:

Magnetite Head Grade Quality

Fe %

FeO %

SiO2 %

Al2O3 %

P %

S %

LOI %

33.89

7.62

50.66

0.23

0.03

0.02

0.31

Magnetite Concentrate Quality

Recovery %

Fe %

FeO %

SiO2 %

Al2O3 %

P %

S %

LOI %

33.4

68.93

19.65

3.00

0.18

0.02

0.02

<0.10

 

The potential mineralisation for the AP14 magnetite project has been based on the following key parameters: 

  • Geomagnetic surface surveys suggest mineralisation ranging from 50% to 70% of the surface area, which is 113 hectares in total, 
  • Depth persistence through geomagnetic surveys has shown good consistency to 75 metres depth, and good indicators beyond 150 metres, which is also the approximate height of the terrain above the local surrounding ground level, and
  • A bulk density factor of 3.1 t/m3

The exploration target is represented in the table below:

Material

Min. Tonnes (million tonnes)

Max. Tonnes (million tonnes)

Min. Grade

(Fe)

Max. Grade (Fe)

BMQ

128

364

25%

50%

Enriched BMQ

5

10

55%

65%

Float Material

1

3

25%

50%

Total

134

377

25%

50%

 

It should be noted that the exploration target quoted above is conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code.  It is uncertain if further exploration will result in the determination of a Mineral Resource.

Contained within this exploration target there exists potential for a high grade core of DSO quality magnetite, with estimates from 5 million to 10 million tonnes with a grade range from 55% to 65% Fe.

The grade range for the BMQ is expected to vary from 25% - 50% Fe.  The average head grade data from all 66 samples collected in the second phase of testing is represented in the following table:

Fe

FeO

SiO2

Al2O3

LOI

S

P

32.91

5.03

51.34

0.39

0.37

0.02

0.03