Best assays to date point to greater resource growth at CZR iron ore project

Latest drill assays at Robe Mesa contain a highlight intersection of 11m grading 57.3% iron from 34m.

Emerging Western Australian iron ore producer CZR Resources (ASX:CZR) unveiled the richest assays to date from drilling at its Robe Mesa project in the Pilbara, which will feed into resource and reserve updates.

Latest assays reveal the presence of more high-grade Direct Shipment (DSO) ore outside the existing resource boundary.

DSO is considered very valuable in the iron ore industry because its high grade means it can be transported directly to port for export without processing, which can increase operating costs.

In the case of CZR, this economic advantage is further reinforced by the fact that the GRD starts from the surface.

CZR said the latest results are in line with its strategy to increase the inventory, mine life and planned production rate at Robe Mesa from the currently planned 2 million tonnes per year to at least 3 Mt. per year.

“Exceptional results”

The highest quality intersections were 11m at 57.3% iron from 34m; 12 m at 57.2% surface iron; and 11m at 57.1% iron from 33m.

CZR Managing Director Stefan Murphy said the results were “exceptional” and are the
the highest grades the company has intercepted so far on the project.

He noted that the results came from the surface and were outside the resource reported in June this year.

“They will further strengthen our impending resource update, which in turn will drive our strategy to increase mine life and production rate.”

Resource and Reserve Updates

Final assay results from the recent drill program at Robe Mesa were approximately five weeks behind schedule.

The results come from 55 reverse circulation holes drilled in the northern extension of the deposit.

Accordingly, the Mineral Resource Update is now expected for mid-December 2022 and the Ore Reserve and Mining Plan Review is now expected for mid-January 2023.

CZR recently raised $3.9 million through a rights issue at $0.012 per share.

The offer received strong support from shareholders, in particular the company’s largest shareholder, Mark Creasy, who subscribed for approximately $2.1 million in new shares, maintaining his stake at 55.1% .


Comments are closed.