CSIRO modelling sets iron ore drill targets for Reedy

Reedy Lagoon has leant on the CSIRO in its quest to define a mineral resource at its Burracoppin magnetite iron ore deposit east of Perth after the Government research agency used “petrophysically constrained magnetic modelling” to sniff out potential ore zones at the project. Reedy says CSIRO has delivered a suite of preliminary results from its modelling that will now be used to guide its drill targeting program.

According to the company, the collaboration with CSIRO could lead to less drilling and reduced exploration costs at the project that lies some 250 kilometres east of Perth.

Petrophysical modelling is often regarded as the link between geology and geophysics. The process takes in a suite of data from the two disciplines to produce a visual interpretation of a basin or field, allowing the user to gain a deeper understanding of the geology.

Reedy engaged the CSIRO, Australia’s premier science and research agency, to help demonstrate that magnetic modelling could play a key role in establishing a JORC-compliant magnetite iron resource in June last year.

The partnership is part of the Federal Government’s Kick-Start initiative that provides financial backing to companies considered to be completing innovative work.

Work to-date has seen the CSIRO complete sub-sampling on a series of core sections to eke out invaluable petrophysical data that was in turn used to gauge the association between iron grade, magnetic susceptibility and density. The data was subsequently used to develop a 3-D magnetic/density model of the mineralisation, building on previously acquired airborne magnetic data.

According to Reedy, the preliminary data has proved highly encouraging, with the CSIRO’s model showing potential to “significantly” assist in its planned drilled program. The company is now waiting on additional assay results, expected later this month, that will be fed into the model.

Reedy now says its anticipated resource definition drilling campaign will be revised to sink several holes aimed at testing the CSIRO’s model and if the model is proven correct, it will be used to guide subsequent holes.

Drilling is scheduled for kick-off following the completion of heritage surveys across an area of bushland where the company is set to plunge its first set of holes. The area takes in some 25 hectares and Reedy says it expects the heritage survey work to be polished off in a day or so.

Reedy’s Burracoppin iron deposit that lies between Perth and Kalgoorlie, was discovered in 2012. To-date the company has only put down a handful of holes at Burracoppin; however, these proved successful in identifying magnetite mineralisation at the project.

Reedy Lagoon is looking to establish an indicated resource of between 20-30 million tonnes of iron concentrate product to feed a planned high-purity pig iron, “HPPI” plant.

In the last ten years or so the CSIRO has proven itself to be an invaluable partner for mineral explorers. The Government agency is often at the tip of the spear when it comes to new and innovative methods of eking out mineral riches and its extraordinary array of projects is mind boggling to say the least.

It will be fascinating to see if Reedy can get a leg up from the CSIRO as it looks to drill the least number of metres for the highest possible return at Burracoppin.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au