Nantuma (Iron) - EL 4815
In late 2011, Lincoln Minerals expanded its iron ore footprint on South Australia's Eyre Peninsula with the granting of a new exploration licence, EL 4815.
Nantuma is immediately adjacent Iron Road Limited's 3.7 billion tonne iron ore deposits and adds to Lincoln's strong portfolio of near mining and advanced iron ore deposits and tenements throughout the Peninsula. The aeromagnetic anomalies that define Iron Road's iron ore resources continue west onto EL 4815 and Lincoln Minerals has defined Exploration Targets(**) for iron ore totalling 0.7 billion to 1.8 billion tonnes at 14-20% Fe within relatively coarse-grained magnetite gneiss of possible Archaean age. Nantuma straddles the existing rail line to Warramboo.
More importantly, LML welcomes the granting of Major Development status by the South Australian Minister of Planning, Deputy Premier John Rau, to the infrastructure component of Iron Road Limited's Central Eyre Iron Project. The proposed 150km infrastructure corridor will include a standard gauge rail line and power supply connecting Warramboo to a proposed deep water port at Cape Hardy that will have 10 million tonne extra capacity available for third party users.
While Iron Road's Murphy South and Boo Loo deposits are relatively low grade at an average grade of 16.2% Fe, Iron Road has demonstrated through prefeasibility test work that a high quality concentrate grading 67% iron may be produced using a coarse grind size of -106¼m. This is suitable for direct feed to a sintering plant.
Nantuma exploration target estimates have been generated from interpretation of regional aeromagnetic data extracted from the South Australian State magnetic data available from DMITRE's SARIG website.
Based on these data sets, the strike length of moderate to high intensity magnetic anomalies that can be attributed to magnetite gneiss is greater than 25km but, of that, only 13.5km has been included in Priority 1 exploration target estimates. No detailed magnetic modeling has been undertaken on individual magnetic anomalies but a conceptual dip of 700, apparent thicknesses in the range from 60m to 150m, and a 50m depth of cover were used to determine exploration targets. Mineralisation was projected to 300m below ground level and a density of 3.1 gm/cc was used for magnetite gneiss.
Based on these parameters, the total Exploration Target (**) estimate for Priority 1 aeromagnetic anomalies is 700 million tonnes to 1,820 million tonnes of magnetite gneiss at a potential average grade of 14% to 20% Fe.