Grange Resources Limited has decided to go ahead with a definitive feasibility study at its Southdown iron ore project as its mineral resource estimate has grown to 698 million tones. The resource estimate is the result of a drilling program that was undertaken a year ago.
The $8.3 million drilling program has found that the magnetite resource at Southdown is more than the 654 million tonnes that it was expected to be. This increase in resource is likely to translate into improved ore reserves as well.
Russell Clark, the managing director of Grange Resources, said that the findings will make it easier to boost financier and investor confidence in the overall project at Southdown iron ore. A pre feasibility study was already completed in 2011 and the definitely feasibility study is to be undertaken by the end of the first quarter of 2012.
Grange Resources owns 70% of the Southdown iron ore project. Sojitz Corp, the Japanese trading company holds the remaining 30% stake in the project. The project is located on a 12 km stretch near the Port of Albany on the south coast of Western Australia. The news about the increased resources helped increase the stocks of Grange Resources by 7.8%.