Reedy Lagoon Corp says it is working with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) to investigate and trial new ways to determine resource estimates that can rely more on geophysics than solely drill hole information.
The ASX-listed explorer has engaged with CSIRO to develop a method of determining magnetite resources using petrophysically-constrained magnetic modelling. The testbed for the research will be Reedy Lagoon’s Burracoppin iron project, in Western Australia, which, the company says, is progressing towards producing green high purity pig iron (HPPI).
The collaboration with CSIRO will use previously drilled core to determine the physical properties (eg magnetisation and density) of the Burracoppin magnetite deposit, and use those results to constrain a detailed 3D magnetic/density model of the mineralisation, Reedy Lagoon said.
Dr Jim Austin, CSIRO Project Leader and Petrophysics Expert, said: “Magnetite resources are unlike any other metal in that the quantity of the resource present (ie iron) has a linear relationship with both density and magnetisation. This means the total iron resource can theoretically be determined to relatively high precision using geophysical methods alone.”
The Burracoppin iron project is seeking to establish an indicated resource of 20-30 Mt of iron concentrate product within the Burracoppin magnetite deposit so that financial projections for the HPPI production can be determined. The deposit is currently identified in detailed airborne magnetic data and three drill holes.
The planned resource definition work is focused in the region between the three drill holes where, as part of the work in establishing a mineral resource, an exploration target has been determined.
“If shown to be successful, the work with CSIRO may lead to a new method of estimating a resource to JORC standards with far less drilling than is currently required, saving much expense and reducing ground disturbance,” Reedy Lagoon said.
The project was made possible through CSIRO Kick-Start, an initiative that provides funding and support for innovative Australian start-ups and small businesses to access CSIRO’s research expertise and capabilities.