The K Deeps Magnetite Mineralisation at Koolyanobbing, Western Australia

Cliffs Natural Resources Pty Ltd - Asia Pacific Iron Ore's (formerly Portman Iron Ore Limited) K deposit (Dowd's Hill), at its Koolyanobbing operation in Western Australia, hosts enriched magnetite mineralisation below the presently mined haematite-goethite ore zone. Two distinct northwest-southeast elongated, highly magnetic anomalous bodies that dip to the north-east appear to be sourced by this deeper mineralisation. Magnetic modelling indicates significant remanent magnetisation with Qratios around 1.5, directed shallow down. The north-west anomaly is overlain by a ridge of uneconomic banded iron formation (BIF) and the present waste dump, whereas the south-east body was partly exposed during ongoing mining of overlying haematite-goethite ore. Sections of the magnetite mineralisation in this south-east anomaly were intersected previously by diamond drill holes. Review of the historic cores identified potential magnetite enrichment, with grades and mineralogy that might be amenable to beneficiation. A first-phase reverse circulation drilling program was designed to further delineate the trend and extent of the two anomalies. The following magnetite mineralisation assemblages are recognised from cores, reverse circulation (RC) drill cuttings and pit mapping of the south-east magnetic body: higher-grade magnetite-haematite ¦ goethite and magnetite ¦ pyrite and lower-grade, recrystallised magnetite-quartz (BIF), magnetite-carbonate, magnetite-talc and minor magnetite-bearing mafic schist. Disseminated specularite is locally present in theassemblages. Talc-schist and massive pyrite occur along the footwall contact. Magnetic susceptibility measured from drill chips within the magnetite-enriched zones reveals an apparent susceptibility values range of 0.2 to 1.3 SI. Preliminary results from Satmagan and Davis tube recovery analysis shows that the magnetite content in these mineralised zones correlate well with existing geophysical data and magnetic susceptibility measurements.