AusQuest Expands Magnetite Potential at Morrisey Project with Promising Drill Results
AusQuest Limited (ASX: AQD) has announced significant progress at its Morrisey Magnetite Project in Western Australia's Midwest mining district, with recent drilling intersecting substantial zones of coarse-grained magnetite across multiple prospects.
Key Highlights: Widespread High-Quality Magnetite Discovery
The company's latest Reverse Circulation (RC) drilling program has successfully intersected coarse-grained magnetite in five of the six targets tested, substantially expanding the magnetite inventory beyond the previously identified Waterfall Prospect.
At least four prospects have delivered highly encouraging results, with significant intersections showing high magnetic susceptibility readings above 200 x 10-3 SI Units – an important indicator of magnetite content. The most substantial intersections include:
- 61 meters at 510 x 10-3 SI Units at Murchison Prospect
- 93 meters at 452 x 10-3 SI Units at Waterfall Prospect
- 63 meters at 450 x 10-3 SI Units at Sandfly Prospect
- 28 meters at 427 x 10-3 SI Units at Murchison South Prospect
"We have been pleasantly surprised by the extent and apparent continuity of the coarse magnetite BIF sequence at Morrisey," commented AusQuest's Managing Director Graeme Drew, who noted the company looks forward to reporting further results as they become available.
Magnetite: Creating Premium Iron Products
Magnetite is a magnetic iron mineral that can be separated from host rock and concentrated using magnetic separation techniques. Previous Davis Tube Recovery (DTR) tests from the Waterfall Prospect confirmed that a premium iron product exceeding 70% Fe can be produced from magnetite in this area using coarse grind sizes (106µm and 75µm).
All magnetite intervals from the current drilling program have been submitted for Davis Tube Recovery testing to determine their potential for upgrading to premium iron products, with results expected within 4-6 weeks.
| Prospect | Key Magnetite Intersections | Magnetic Susceptibility |
|---|---|---|
| Murchison | 61m, 44m, 23m | 304-510 SI x 10-3 |
| Murchison South | 28m, 13m, 11m | 335-427 SI x 10-3 |
| Sandfly | 63m, 62m, 36m, 26m | 435-489 SI x 10-3 |
| Waterfall | 93m, 62m, 46m, 35m, 22m | 320-503 SI x 10-3 |
Understanding Magnetic Susceptibility
Magnetic susceptibility is a crucial measurement in magnetite exploration that indicates how responsive a material is to an applied magnetic field. In the context of iron ore exploration:
- High readings (>200 x 10-3 SI Units) typically indicate significant magnetite content
- Measurements are taken using handheld devices pressed directly into sample material
- While magnetic susceptibility indicates magnetite presence, Davis Tube Recovery (DTR) testing is required to determine the quality and quantity of recoverable iron
This measurement helps geologists identify magnetite-rich zones without waiting for laboratory assays, allowing for rapid field assessment of potential iron ore resources.
Project Timeline and Next Steps
AusQuest is advancing the Morrisey Project under a Strategic Alliance Agreement (SAA) which is funding the current exploration program. The immediate next steps include:
- Completion of Davis Tube Recovery (DTR) test work on all magnetite samples (4-6 weeks)
- Development of cross-sections once all analytical data is received and assessed
- Further evaluation of the commercial potential based on DTR results
- Planning of follow-up work to expand and define the magnetite resources
Investment Potential: Building a Magnetite Resource
The Morrisey Project is showing significant promise as a potential source of high-grade iron products. Several factors make this project compelling for investors:
- Multiple magnetite-rich zones discovered across a wide area, indicating district-scale potential
- Previous tests show premium product potential with iron content exceeding 70% Fe
- Coarse-grained magnetite typically allows for easier and more cost-effective processing
- Strategic location in Western Australia's established Midwest mining district with access to infrastructure
The discovery of widespread magnetite across multiple prospects significantly increases the project's scale potential compared to the initial Waterfall Prospect findings. Should the DTR tests confirm similar high-grade iron products can be produced from these new discoveries, the company could be positioned to develop a substantial resource with strategic value.
Why Follow AusQuest's Morrisey Project
The Morrisey Project represents a compelling opportunity in the iron ore space for several reasons:
- The project is showing consistent magnetite mineralisation across multiple targets, suggesting a potentially large-scale resource
- Initial testing indicates the magnetite can be upgraded to premium iron products (>70% Fe) using relatively coarse grind sizes, which is important for commercial viability
- The exploration is being funded through a Strategic Alliance Agreement, reducing financial risk for AusQuest
- The imminent DTR test results could serve as a significant near-term catalyst
AusQuest has positioned itself with a potentially significant magnetite resource in Western Australia's productive mining region. With multiple high-quality magnetite intersections and promising initial metallurgical characteristics, investors should watch closely for upcoming DTR results that could confirm the commercial potential of this expanding discovery.
Ready to Learn More About AusQuest's Promising Magnetite Discovery?
Discover why AusQuest's expanding magnetite discoveries at the Morrisey Project could represent a significant investment opportunity in the premium iron ore space. With multiple high-grade intersections and preliminary testing indicating potential for 70%+ Fe products, this could be just the beginning of a substantial resource development story. For comprehensive information about AusQuest and their latest exploration results, visit their website at www.ausquest.com.au and stay informed about this emerging opportunity.
