Matsa is actively working to progress development of its Dundas Iron Ore Project, with preliminary assessment of the iron ore potential of this project located 200 kilometres south of Kalgoorlie in Western Australias Southern Goldfields region.
Matsa's tenements contain more than 16km strike length of archaean banded iron formation (BIF), in the southern part of the Yilgarn block and which shares many geological similarities with other Archaean age magnetite projects which are currently being investigated by others including Karara (Ansteel /Gindalbie), Mt Ida (Jupiter Mines) Lake Giles (Macarthur Minerals). Matsa’s exploration target of of 350 to 700 million tonnes of magnetite mineralisation is modest in comparison to competitor projects because of its unique location close to a heavy gauge railway leading to the existing iron ore export port of Esperance. Proximity to infrastructure means that potential project development will benefit from significantly lower capital costs.
Metallurgical testwork based on a 21 hole ….m RC and diamond drilling programme returned very encouraging results. Magnetite recovery based on Davis Tube Recovery (DTR) testwork returned magnetite contents in the BIF up to …% which compares very favourably with competing projects. Key assays of magnetite concentrate include iron grades of >63% Fe, silica grades of <8% SiO2) and low contents of sulphur, alumina and phosphorous. Based on Matsa’s discussions with potential Chinese investors these are well within target specifications for Chinese steel mills. See table below.
Target BIF units are interlayered with Dolerite in a sequence dominated by basaltic volcanic rocks as shown in the drill section below. Matsa has planned a two stage follow up drilling programme in 2012 to delineate iron ore resources in full compliance with JORC standards, as the basis for a scoping study leading to a Definitive Feasibility Study (DFS) within the next 3 years.
Key benefits of the project are significant, including:
- Access to high quality Infrastructure and established mining culture Norseman located 20 kilometres to the north.
- Esperance Port only 170km to the south;
- Only 3km from heavy haulage railway line;
- Highway through the project;
- Gas pipeline through the project.
