Padbury Mining JV begins drilling at Australian prospect

6 December 2011 (Last Updated December 6th, 2011 18:30)

Padbury Mining and joint venture (JV) partner Aurium Resources has commenced drilling at Peak Hill Iron Project’s Mt Padbury prospect in Western Australia.

Padbury Mining and joint venture (JV) partner Aurium Resources has commenced drilling at Peak Hill Iron Project's Mt Padbury prospect in Western Australia.

The first hole of the company's planned 39-hole maiden drilling programme, approved by government agencies, has been completed.

Iron ore targets with hematite-goethite mineralisation and a hematite exploration target of 20-28Mt at 55-60% Fe have been recovered through geological mapping.

Establishing a direct shipping ore source will provide the JV partners with revenue to support the development of the company's Telecom Hill magnetite resource.

Peak Hill's JORC-compliant inferred magnetite resource is currently 850Mt at 27.3% Fe.

The company plans to integrate the Mt Padbury operations within the ongoing evaluation drilling of magnetite and hematite potential for the Peak Hill project at Telecom Hill.

The drilling programme will be complete by January 2012 and the results of test work on core samples are expected in the first quarter of 2012.