Explorers dig in
Wednesday, 2nd June, 2010
A Queensland exploration company will spend more than $8 million this year trying to scope out one billion tonnes of iron ore south of the city.
Carpentaria Exploration said if drilling on its Hawsons Iron project, 60 kilometres south of Broken Hill, went as planned it could develop a huge magnetite iron mine within four years.
"We are confident of developing this discovery for the benefit of all stakeholders," executive chairman Nick Sheard said.
As part of a $81 million deal with Bonython Metals Group (BMG), Carpentaria announced yesterday that it had received a further $4 million which will be used to explore one tenement at Hawsons - Burta.
Under the Burta agreement, Carpentaria will manage the exploration, resource drilling and pre-feasibility study.
Mr Sheard said the money was part of a six-week $13m staged payment from BMG.
Of that, $8m would be used for exploration, resources drilling and a pre-feasibility study on Burta with a goal of defining up to one billion tonnes of inferred iron ore resources.
"Initial drilling at Burta is targeting the priority magnetite targets to define the prospects for follow up resource drilling," Mr Sheard said.
He said the remaining $5m will be used to explore other interests around the city, including the Euriowie tin discovery, north east of Broken Hill, the Panama Hat gold project and the MacDougalls hematite project, north of the city.
"Carpentaria and its JV partners are committing a record $10 million in exploration spending on Carpentaria's projects this year."
Mr Sheard, who is this week visiting a number of the company's Broken Hill tenements, said yesterday's cash showed further commitment from BMG.
"The funding is an important boost for the project's progression to potential development, adding confidence in the discovery of a new magnetite iron province near Broken Hill," he said.
"BMG has proved a loyal and extremely supportive partner, and we are pleased with the progress made on our joint venture since its formation on April 20, 2010."
Meanwhile Mr Sheard yesterday visited the Euriowie tin deposit, 50km north-east of Broken Hill. The company has applied to have an exploration licence granted at the old mine site.