- Exploration Target of 100-250mt Hematite @ 55-65% Fe
International iron ore company Sundance Resources Limited (ASX: SDL – "Sundance") is pleased to announce that it has commenced drilling at the Nabeba Deposit in the Republic of Congo, a key exploration target for the Company’s Mbalam Iron Ore Project in 2010.
The Nabeba Deposit is located 42km south of the Mbarga Deposit (refer Figure 1), where Sundance has previously reported JORC-Code compliant Indicated and Inferred Resources of High Grade Hematite totalling 215.2Mt grading 60.2% Fe and Indicated and Inferred Resources of Itabirite Hematite totalling 2,325 million tonnes grading 38.0% Fe.
Drilling at the Nabeba Deposit is aimed at defining additional JORC-Code compliant resources of High Grade Hematite based on a current Exploration Target* of 100 to 250Mt Hematite grading 55% to 65% Fe.
Figure 1: Location of the Nabeba Deposit The Company has commenced drilling with the Sandvik DE710 drill rig purchased in late 2009 (refer Figure 2). This rig has achieved excellent penetration rates and core recovery from recent drilling on the Company’s exploration landholdings to the north of the Nabeba Deposit in the Republic of Cameroon. A new Schramm RC drill rig is currently being shipped from the US and is targeted to commence drilling at Nabeba in the March 2010 Quarter. 
Figure 2: Sandvik DE710 Drill Rig operating at the Nabeba Deposit The Exploration Target* at the Nabeba Deposit was derived from preliminary modelling based on assessment of results reported from previous drilling undertaken by the Bureau de Recherche Géologiques et Minières (“BRGM”) on the deposit in 1986 together with assay results obtained from surface sampling over the deposit by Sundance in 2009 and aerial geophysical survey work completed by Sundance in 2008.
BRGM completed four diamond holes drilled to depths ranging from approximately 54m to 100m. Table 1 summarises significant drill hole intersections within the Supergene Zone of the iron mineralisation on the Nabeba Deposit derived from the assay results reported by BRGM. Figure 3 shows the location of the four holes drilled by BRGM together with the surface sampling results previously reported undertaken by Sundance. Table 1: Significant Drill Intersections derived from Results reported by BRGM (1986) 
“We are very pleased that drilling has commenced at Nabeba after a tremendous effort by our field team in constructing new access to the deposit over recent months,” said Sundance’s CEO, Don Lewis.
“Local infrastructure improvements and support to the local communities in this remote part of the Republic of Congo is being well received as are the employment opportunities and training being provided to the National workforce by Sundance”.
“Our first phase of drilling on Exploration Permit 92 in Cameroon successfully defined a world-scale Resource inventory of High-Grade and Itabirite Hematite at the Mbarga, Mbarga South and Metzimevin Deposits. We are currently drilling out these deposits with the aim to progressively convert current resources to reserves.
“We look forward to increasing our High-Grade Hematite Resource inventory over the coming months through the drilling program now underway at Nabeba. If our Exploration Target is achieved, this could result in a potential doubling of the tonnage of High-Grade Hematite controlled by the Company,” Mr Lewis added.
“This is an important milestone for the Mbalam Project following our recent $85 million capital raising. The drilling program, which forms a core part of our Definitive Feasibility Study, has the potential to add substantial value to the Project as we progress discussions with prospective partners, customers and financiers in support of project financing activities in 2010.”
Figure 3: Assay Results from Surface Sampling over the Nabeba Deposit by Sundance (2009)
* While the Company is optimistic that it will report additional resources in the future, any discussion in relation to the potential quantity and grade of Exploration Targets in excess of Inferred or Indicated Mineral Resources is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource in excess of that estimated for the Mbarga, Mbarga South or Metzimevin Deposits and it is uncertain if further exploration will result in determination of a Mineral Resource for the Nabeba Deposit or other prospects on the Company’s landholdings. |
