If recent drill results and an historic resource estimate are any indication, Northern Iron Corp (NFE-V, N8I-F) could turn some heads when it releases an initial resource estimate on its Karas property in the Red Lake mining district before the end of the year.
Yesterday the junior announced an intersection of magnetite mineralization just short of half a kilometre that remains open at depth, prompting shares of the company to climb 13.6% to 25¢ per share. Drill hole 11-18 returned 443.15 metres of 32.43% Fe203 or iron oxide, including 77.6 metres of 43.21% iron oxide.
On Oct. 18, Northern Iron released the third set of assay results that demonstrated magnetite mineralization continued to be consistent between drill holes. Hole 11-14 returned 354.97 metres of 31.13% iron oxide, while hole 11-13 cut 138.17 metres of 33.40% iron oxide including 71 metres at 40% iron oxide. Hole 11-15 returned 35.77 metres of 25.77% iron oxide.
Northern Iron has completed 21 of a planned 30 drill hole (10,000 metre) program on the Karas property, 15 km northeast of the town of Ear Falls in the Red Lake district and president and chief executive Basil Botha says he is pleased with the results so far.
“The tightly folded banded iron formation on the Karas property demonstrates a continuous formation from surface to depth with a magnetic signature of 800 metres by 500 metres at surface.”
The Karas property has a non-compliant historical resource of 21 million tonnes of 22.8% Fe in an open pit to a depth of 152 metres.
Botha is the founder and managing director of Reef Coal Mining in South Africa and is also currently president and chief executive of G4G Resources. His resume includes a stint as chairman at Lithium Americas (LAC-T, LHMAF-O).
At presstime in Toronto Northern Iron was trading at 24¢ within a 52-week range of 15-33.5¢. The junior explorer has about 74.5 million shares, fully diluted.
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