CENTRAL YILGARN IRON PROJECTS
For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports
Overview of the Central Yilgarn Iron Project
At a time when iron ore continues to command high levels of interest and strong prices for its fundamental role in a number of expanding economies, the Central Yilgarn Iron Ore Project (CYIP) offers Jupiter exposure to an iron ore exploration prospect in close proximity to established infrastructure including access to a main road and railway transportation (Figure 1).
The project area is still under explored, and Jupiter will be implementing exploration programs to fully test the area's potential for iron ore mineralization (Figure 2). The CYIP consist of three project area's Mt Mason, Mt Ida and Mt Alfred . All three projects 100% Owned by Jupiter Mines. Currently the main projects within the CYIP -
- Mt Mason 5.75 million tonnes at 59.9% Fe, 3.5% Al2O3, 7.4% SiO2, 0.064% P and 3.0% LOI using a 55% Fe cut-off grade.
- Inferred Resource 530 million tonnes at 31.94 Fe, 1.10 Al203%, 45.88 SiO2%, 0.074 P% and 0.201S%
Location
The CYIP is located west of Menzies, with the Mt Mason inferred resource being approximately 100km North West of Menzies. Mt Mason tenement M29/408 adjoins the Mt Ida tenement E29/560. The Mt Ida magnetite Prospect is located 15 km south of Mt Mason inferred resource. Mt Hope and Walling Rock sit 67km to south. The project area covers 275km2 (Figure 3). The banded iron formations (BIFs) trend North West in sub parallel in multiply sets ranging from 1 to 6 in a set. The all iron mineralization in CYIP is generally hosted within the BIFs.
History
Mt Mason has been known since 1912 when H.W.B. Talbot discovered it. Talbot refers to the mineralization in GSWA Bulletin 45 as "a large mass of fine iron ore" superficial exploration for iron ore and pigment has occurred since then. Russell et al on behalf of BHP in 1970 took 5 surface samples which gave a composite grade of 62.8% Fe with 0.042% P. In 1978 Kalgoorlie Southern Goldmines surveyed a grid, cut some access tracks, mapped part of Mt Mason and drilled 20 shallow percussion holes for iron pigment. No quantitative analyses for iron were recorded for these holes but general descriptions of the cuttings were recorded.
In 1969, BHP surveyed Mt Mason. This was approximately 60 years after the initially discovered by Geological Survey of Western Australia. Even though high iron assays from the survey returned 62.8% iron with 0.042% phosphorus, BHP did not proceed with the project. Infrastructure in the area was limited at the time. No exploration was carried out for many years in CYIP.
Geology
The Mt Mason-Mt Hope tenement areas cover part of the western edge of the Mt Ida greenstone belt, which lies along the eastern boundary of the Southern Cross Granite-Greenstone Terrain. A large scale regional structure, the Ida Fault, marks the boundary between the Southern Cross Granite-Greenstone and Eastern Goldfields.
The Ida Fault is a complex structure of sinusoidal faulting and shearing with varying stages of deformation throughout the Mt Ida greenstone belt. The western part of the belt, which is partially covered by project tenements, comprises a typical Southern Cross rock association of abundant metabasalt, banded iron formation and subordinated ultramafic rocks. The greenstone exposure around Mt Mason indicates shallow to steep, east dipping units of banded iron formation, with intercalated mafic rocks. Late stage granitoids, pegmatites intrude the sequence. East-west trending dolerite dykes cut across the regional trend.
Mt Mason- typical Banded Iron Formation (BIF)
Mt Mason Drill Rig in background
Figure1. Location Map
The potential project quantity and grade is conceptual in nature and there has been insufficient exploration to define a total potential mineral resource outside the current JORC compliant inferred Resource at Mt mason (5.75 million tonnes @ 59.9% Fe), and any potential resource at CYIP is conceptual in nature (Mt Ida) and is for exploration purposes only. There has been insufficient exploration and valuation to define total mineral resource for CYIP and it is uncertain if future exploration will result in the determination of a mineral resource
For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports
Mt Mason DSO Hematite Project
Jupiter has completed a substantial upgrade in the high grade hematite resource at its 100%-owned Mt Mason Project to 5.75 million tonnes at 59.9% Fe, 3.5% Al2O3, 7.4% SiO2, 0.064% P and 3.0% LOI using a 55% Fe cut-off grade.
Importantly the resource remains open to the north-east and further scope exists for extensional drilling. The resource model will require infill drilling to upgrade the current inferred Resource to indicated and measured categories. Drilling by Hawthorn Resource drilling confirms the Mt Mason mineralization extends into the adjoining license.
In total holes, 67 holes of RC drilling have been completed totaling 3388 metres, (includes all historical holes) the drilling generally displayed thick occurrences of massive hematite /maghematite and/or hematititic BIF
Some magnetite was also seen, with a few holes intersecting basement ultramafic rock. the upgraded resource represents a 160% increase over the previous inferred resource announced in October 2007, and was the result of a very successful drill program which included significant intersections (holes 08RCmm09 (61m @ 65.5% Fe from 16m), 08RCmm013 (64m @ 60.6% Fe) and 08RCmm014 (64m @ 60.5% Fe) (Figure2)
Several internal shale units have been identified within the resource which have been excluded from the current resource estimate and reported as a separate material due to their close relationship with the mineralisation.
Photograph 1. Mt Mason high grade hematite outcrop
The potential project quantity and grade is conceptual in nature and there has been insufficient exploration to define a total potential mineral resource outside the current JORC compliant inferred Resource at Mt mason (5.75 million tonnes @ 59.9% Fe), and any potential resource at CYIP is conceptual in nature and is for exploration purposes only. There has been insufficient exploration and valuation to define total mineral resource for CYIP and it is uncertain if future exploration will result in the determination of a mineral resource.
Figure 1. Mt Mason Drill Hole Locations
Mining Consultant - David Milton (Mt Mason Inferred Resource) Competent Person
The information in this report that relates to Mineral Resources of Mt Mason is based on information compiled by Mr. David Milton, who is a Member of the Australian Institute of Mining and Metallurgy and a full time consultant. Mr. David Milton has sufficient experience in the type of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the December 2004 Edition of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports
Mt Ida Magnetite Project
The drill program on the Mt Ida Magnetite Project was completed in December testing the Central Area. Jupiter is pleased that the Maiden Inferred Resource of 530 million tonne @31.94% Fe (Table 1) has exceeded expectations. The maiden inferred resource generated from the Central Area has demonstrated that Mt Ida has the potential to be a substantial magnetite project.
Figure 1 - Mt Ida 3D Aeromagnetic and Conceptual Exploration target Area
| MT | Fe% | SiO2% | Al2O3% | P% | S% | |
| Central Mt Ida | 530 | 31.94 | 45.88 | 1.10 | 0.074 | 0.201 |
Table 1 - Mt Ida Inferred Resource
Notes :
- Head grade cut off 15% Fe
- Density estimated of 3.2t/m3 was applied
- Resource Calculation Parameters - Attachment 1
- Significant Intercept Table Mt Ida – Attachment 2
- Inferred Mineral Resource for Mt Ida Magnetite deposit, have been reviewed by SRK Consulting Pty Ltd (SRK). SRK has concluded Tonnes and the head grade Fe%, SiO2 %, Al2O3 %, P% and mass recovery (DTR) estimates are not that the fatally flawed.
Senior Exploration Geologist: Michael O’Mara Competent Person Inferred Resource Statement Mt Ida
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore reserves is based on information compiled by Mr Michael O’Mara who is a Member of the Australian Institute of Geoscientists and a full- time employee of Jupiter Mines Limited. Mr Michael O’Mara has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Michael O’Mara consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears Michael O’Mara holds the position of Senior Exploration Geologist with Jupiter Mines Limited.
The estimated quantity and grade of the magnetite inferred resource has been restricted to magnetite Banded Iron Formation (BIF)in the area currently covered by drilling on an approximate 250m x 150m drill pattern at Mt Ida central using vertical holes. This is represented by an area approximately 2.2km (North North -east) x 1km (east-west) on the Central Mt Ida mineral resource. Grade interpolation has been extrapolated using ordinary inverse distance squared on composited sample results and a nominal 15% Fe cutoff value for magnetite BIF mineralization. A digital terrain surface (based on magnetic survey flow), has been used to with structural mapping to limit extrapolation of the mineralization. Internal waste zones (mafic units) less than 5m within the BIF units have been included in the Inferred Resource model as internal dilution. Generally all oxide material occurs between the surface and a down hole depth of 50 metres. Only fresh magnetite is included in the Inferred Resource model, oxide material is excluded. Densities of 3.2t/m3 have been applied for evaluation of the magnetite mineralization.
Jupiter has previously announced a conceptual exploration target of between 1.1 to 1.3 billion tonnes for magnetite at Mt Ida, with an expected grade of between 30 to 40% Fe (figure 1). The conceptual target has a length of approximately 7.5 km. The initial drilling program tested the potential of only the Central Area which has a length of 2.2 km, but now the exploration model being validated, a substantial drill program is now in the planning phase to test the northern and southern areas, and significantly increase the resource base.
Mineralisation in the Central Area has been intercepted down to 300 metres. The magnetite BIF units plunge at approximately 20 degrees to the NNE with a dip of 30-40 degrees to the ENE. Modelling of these units from the drill data has delineated a series of six magnetite BIF lodes in the Central Area (Figure 2). Regional folding over the project has resulted in localised crustal thickening of the BIF units with the axial plane of this folding also trending NNE.
Oxide mineralisation is usually present from surface down to a depth of 50 metres and is dominated by hematite, goethite and magnetite. The fresh magnetite mineralisation is in the main six lodes and extends from 50 to 300 metres in depth.
Figure 2 - Mt Ida Inferred Resource Model showing the six mineralised lodes
While the Company is optimistic that it will report additional resources in the future, any discussion in relation to Exploration Target, over and above the stated Inferred Resources is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource over and above the Inferred Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.
DTR test work on the first 33 holes is summarized below, the target grind size was a P80 of 25 micron,
• Holes 10MIRC002 to 10MIRC010 at a 15% Fe cut off grade is 42.6% weight recovery producing a concentrate grade of 67.4% Fe and 5.9% SiO2
• Holes 10MIRC011 to 10MIRC033 at a 15% Fe cut off grade is 44.5% weight recovery producing a concentrate of 68.0% Fe and 4.5% SiO2
Preliminary metallurgical test work conducted on two bulk samples prepared from the first 33 holes gave,
• A good correlation between grind (P80 of 25 micron) and product grade, a reverse flotation polish will achieve target of 4.5% SiO2
• Tailings rejection very high, more than 50% mass rejected at 3mm – positive for project, more testing will be conducted at coarser sizes
• Concentrate quality is very good, 68 to 69% Fe, 4.5% SiO2 with very low levels of contaminates, S and P
Drilling of the Southern and Northern Areas is now being planned for 2011/2012 to increase the inferred resource base, and infill holes in the Central area to bring the resource into the measured and indicated categories. It is intended upon a completion of a Scoping Study and Board approval to complete a Feasibility Study in late 2012.
• Note 75 samples were composited using 2kg sub samples. Than submitted for high level metallurgical test work as two bulk samples.
For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports
Mt Alfred Prospect
Location and access
The Mt. Alfred tenement is located 135 km northwest of Menzies and 260 km north of Southern Cross in the Central Yilgarn. Access from Kalgoorlie is via the sealed Wiluna Road to Menzies and then by the formed Menzies-Sandstone road that traverses the tenement from north to south. Access within the project area is via pastoral station tracks.
Project Geology
The geology of the Mt. Alfred tenement is dominated by Archaean greenstone belts
(The Illaara belt to the east and the Mt. Marmion belt to the west) and constitutes an
interlayered metamorphosed sequence of greywacke sediments, BIF, basic and acid volcanic rocks, together with coarse-grained basic and ultramafic intrusive rocks. Granite lithologies bound the eastern and western margins. Folding is ubiquitous in the BIF and is represented by major flexures of the whole units about a south-plunging axis and by small scale folds intraformational to the fine scale layering.
Eastern parts of the tenement include multiple BIF horizons which cover 14km of strike and form a prominent line of north striking hills that rise to a maximum height of 90m above the surrounding plain level. BIF units are between 15m and100m wide and are easily accessible from nearby station tracks. Banding alternates between iron-rich (magnetite/hematite/goethite) and siliceous (chert/quartz) material with layers varying along a mm scale to cm scale. Much of the tenement is under cover both transported and locally derived.
In the northern section of the licence a series of ultramafic rocks show occasional contact with narrow banded ironstones. A similar contact north of Laverton hosts the Mt Windarra nickel occurrence
Mt Alfred was drilled in 2010 program Included 11 RC angled drill hole for a total of 1195m. The drill program intercepted magnetite BIF units of varying down hole intercept widths from a few metres to over 136m. The best down hole intercepts were from hole MA 11 (56M @32% Fe from 6m) and MA2 (136m @ 33% Fe from 28m). Table 1 contains the highlights from the drill program and drill collars are in table 2. Drilling confirmed that magnetite BIF persisted at depth, that the iron grade is generally between 25-35% Fe with peak values of 54.2% Fe (MA16 34-36m down hole depth)
Table 1 Highlights oF Mt Alfred RC Drill Program
|
Hole |
From |
To |
Intercept length |
Fe |
Al2O3 |
CaO |
MgO |
P |
S |
SiO2 |
LOI1000 |
|
|
|
|
|
|
|
|
|
|
|||
|
MA2 |
88 |
126 |
38 |
35.88 |
0.63 |
7.55 |
7.47 |
0.05 |
0.080 |
15.03 |
16.897 |
|
MA3 |
80 |
96 |
16 |
31.27 |
1.22 |
0.048 |
0.30 |
0.032 |
0.019 |
50.52 |
2.107 |
|
MA3 |
112 |
136 |
24 |
30.92 |
1.63 |
1.46 |
3.19 |
0.042 |
0.262 |
41.45 |
5.725 |
|
MA5 |
36 |
58 |
22 |
34.08 |
0.34 |
0.019 |
0.107 |
0.032 |
0.023 |
48.00 |
2.224 |
|
MA5 |
66 |
78 |
12 |
33.28 |
1.57 |
0.06 |
1.00 |
0.044 |
0.060 |
41.50 |
6.343 |
|
MA6 |
|
|
No Significant Mineralisation |
|
|
|
|
|
|||
|
MA9 |
|
|
No Significant Mineralisation |
|
|
|
|
|
|||
|
MA11 |
6 |
62 |
56 |
32.06 |
5.22 |
0.37 |
0.58 |
0.029 |
0.048 |
41.42 |
5.597 |
|
MA11 |
96 |
118 |
22 |
36.79 |
0.543 |
0.037 |
0.22 |
0.037 |
0.034 |
42.89 |
2.741 |
|
MA13 |
8 |
26 |
18 |
30.42 |
8.92 |
0.29 |
0.54 |
0.037 |
0.005 |
39.62 |
6.085 |
|
MA14 |
16 |
32 |
16 |
29.13 |
0.892 |
1.18 |
1.58 |
0.035 |
0.037 |
52.12 |
2.047 |
|
MA15 |
|
|
No Significant Mineralisation |
|
|
|
|
|
|||
|
MA16 |
28 |
164 |
136 |
33.37 |
0.77 |
1.24 |
2.23 |
0.044 |
0.116 |
46.09 |
1.144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
360 |
32.72 |
|
|
|
|
|
|
|
Note weighted average with 29 % Fe CUT OFF GRADE and 4m of dilution
Figure 1. Drill hole location Plan and Geology Map of Mt Alfred
For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports