RC Drilling Underway to Expand on Premium Iron Discovery
AusQuest Limited (ASX: AQD) has commenced a significant 5,000-meter Reverse Circulation (RC) drilling program at its Morrisey Magnetite Project located in Western Australia's Midwest mining district. The campaign targets multiple magnetic and gravity anomalies similar to those that led to the company's Waterfall Prospect discovery.
The comprehensive program includes at least 22 drill holes across five new targets, strategically designed to determine the overall magnetite potential of the area and evaluate future commercial possibilities. This initiative builds upon previous successful results at the Waterfall Prospect, where testing confirmed the ability to produce premium iron products with excellent recovery rates.
Targeting Premium Iron Production
Previous Davis Tube Recovery (DTR) tests at the Waterfall Prospect demonstrated impressive results that highlight the project's commercial potential:
| Waterfall Prospect Results | Details |
|---|---|
| Iron Product Grade | >70% Fe |
| Grind Size | Coarse (106µm and 75µm) |
| Magnetite Recovery | ~34% |
These metrics showcase the project's capacity to produce high-quality magnetite concentrate using relatively coarse grinding, which represents a significant commercial advantage in processing economics.
"Previous drilling at the Waterfall prospect showed us that a high-grade product (>70% Fe) could be produced from the area and we are now looking to add to the Project's resource base by testing at least five other prospects with similar geophysical signatures," said Graeme Drew, Managing Director of AusQuest.
Understanding Davis Tube Recovery Testing
Davis Tube Recovery (DTR) testing plays a crucial role in magnetite project evaluation. This laboratory method determines the magnetic material content in a sample and assesses its quality. For magnetite projects like Morrisey, DTR testing provides essential information for project viability assessment.
The testing process works by passing a ground sample through a magnetic field inside a water-filled glass tube. Magnetic particles are attracted to the sides of the tube while non-magnetic materials remain suspended. This separation simulates the commercial magnetic separation process at laboratory scale.
DTR testing provides several key pieces of information:
- Concentrate grade – The iron content (Fe%) achievable after processing
- Recovery percentage – How much of the valuable material can be extracted
- Optimal grind size – The particle size that delivers the best grade/recovery balance
- Impurity levels – Concentrations of unwanted elements like silica, alumina, and phosphorus
For the Morrisey Project, DTR results have shown the potential to produce concentrates with greater than 70% Fe using a relatively coarse grind size. This is particularly significant as coarser grinding typically requires less energy during processing, potentially reducing operational costs.
High-grade iron products (>67% Fe) typically command premium prices in the market, with each additional percentage point of iron content often resulting in significant price differentials. The >70% Fe potential at Morrisey therefore positions the project in the premium product category.
Project Timeline and Next Steps
The current drilling program follows a structured timeline with well-defined milestones:
- Drilling duration: Approximately 4 weeks
- Sample analysis: All magnetite samples will undergo Davis Tube Recovery testing
- Results timeline: Expected 6-8 weeks after drilling completion
- Exploration goal: Determine the overall magnetite potential of the area
This methodical approach ensures systematic evaluation of the project's potential while maintaining a steady flow of news and developments for investors to track.
The drilling program specifically targets at least five new magnetic/gravity anomalies identified by AusQuest's technical team. These targets share similar geophysical signatures to the successful Waterfall Prospect, where previous drilling confirmed the presence of high-grade magnetite mineralisation.
Strategic Significance for AusQuest
The Morrisey Magnetite Project represents a compelling opportunity for AusQuest for several reasons:
- Proven premium product potential: The ability to produce >70% Fe product places the project in the premium iron ore category
- Coarse grind advantage: The project's ability to achieve high grades with coarse grinding offers potential cost advantages
- Multiple targets: With five new targets similar to the successful Waterfall Prospect, the scale potential is significant
- Strategic partnership: The project is funded under the Strategic Alliance Agreement with a South32 subsidiary, mitigating financial risk
The South32 partnership is particularly notable as it provides funding support while allowing AusQuest to maintain operational control of the exploration program. This arrangement helps mitigate financial risk while maintaining exposure to discovery upside.
The magnetic and gravity anomalies being tested in this program are defined by sophisticated geophysical surveys that have proven effective in identifying magnetite mineralisation in the region. The similarity of these anomalies to those at the Waterfall Prospect increases confidence in their potential to host significant magnetite mineralisation.
The Importance of Magnetite Iron Ore
Magnetite iron ore differs from direct shipping ore (DSO) in that it requires processing to produce a saleable product. However, magnetite concentrates often achieve higher grades than DSO products, typically ranging from 65% to over 70% Fe compared to standard DSO grades of 58-62% Fe.
High-grade iron products offer several advantages:
- Price premiums: Higher Fe content products command premium prices
- Lower impurities: Processed magnetite typically contains fewer impurities
- Reduced emissions: Higher grade products require less energy during steel production
- Blast furnace efficiency: Premium iron ore improves steel mill productivity
With global steelmakers increasingly focused on reducing carbon emissions, demand for high-grade iron ore products is anticipated to grow. This trend could potentially benefit projects like Morrisey that demonstrate the ability to produce premium iron concentrates.
Why Investors Should Follow AusQuest
AusQuest presents a compelling case for investor attention in the current market:
| Key Strengths | Details |
|---|---|
| Quality product potential | Premium iron ore (>70% Fe) with excellent recovery rates |
| Strategic backing | Funded by Strategic Alliance Agreement with South32 |
| Multiple catalysts | Results from 5 targets expected over coming months |
| Processing advantages | Coarse grind capability potentially lowering production costs |
The company's methodical approach to exploration, combined with early encouraging results and strategic partnership support, positions AusQuest as a noteworthy player in the magnetite space with significant news flow expected in the near term.
With iron ore maintaining strong fundamentals in global markets and premium products commanding substantial price premiums, AusQuest's progress at Morrisey represents a significant opportunity to watch closely as results from this extensive drilling program emerge over the coming weeks and months.
Technical Program Details
The current drilling program employs Reverse Circulation (RC) drilling, a technique well-suited for this stage of exploration. RC drilling uses high-pressure air to bring samples to the surface, providing representative samples for analysis while being more cost-effective than diamond drilling.
Key technical aspects of the program include:
- Drilling depth: Holes designed to adequately test the magnetic/gravity anomalies
- Sample collection: Systematic sampling at regular intervals
- Quality control: Industry-standard QA/QC protocols being followed
- Analysis: Comprehensive analysis including Davis Tube Recovery testing
The drilling locations have been strategically planned to test the full extent of the identified anomalies, providing a comprehensive assessment of their potential to host significant magnetite mineralisation.
Results from this program will be particularly significant as they will help determine whether the Morrisey Magnetite Project has the potential to host multiple magnetite deposits, which would substantially increase its overall resource potential and commercial significance.
Ready to Explore This Premium Iron Ore Investment Opportunity?
Discover how AusQuest's promising Morrisey Magnetite Project could deliver premium >70% Fe products with significant commercial advantages. To learn more about their strategic drilling program targeting multiple high-potential anomalies and stay updated on forthcoming results, visit AusQuest's website for comprehensive investor information and project developments.
