Forrestania Resources Shares Surge On Signing Option To Acquire Iron Ore Project

Forrestania Resources Ltd (ASX: FRS) is acquiring the highly prospective Koolyanobbing Fe Project in the Yilgarn Region of Western Australia.

The project is located near Minerals Resources Ltd’s (ASX: MIN) Koolyanobbing iron ore operations.

Forrestania shares surged following the announcement, last trading ~268% higher, at A$0.07.

Strategic location

The Koolyanobbing Fe Project represents significant potential due to its proximity to MinRes’ Koolyanobbing Operations.

Its strategic location is in close proximity to the established MinRes facilities, including rail and mine infrastructure, potentially providing synergies and lowering future capital and operational expenditures.

Koolyanobbing Greenstone Belt

The project is located on the Koolyanobbing Greenstone Belt (KGB), which forms part of the Southern Cross Greenstone Terrane.

Banded Iron Formations (BIF), metasediments, and granite-greenstone belts form the KGB.

The KGB is ~45km long and up to 10km wide. Importantly, over 30km combined strike of BIF horizons are located within the project area.

Drilling approval secured

Aeromagnetic imagery shows extensive BIF formations at Koolyanobbing, confirmed by surface mapping and sampling.

Besides limited electromagnetic surveys targeting nickel, no modern exploration techniques have been applied to the target areas.

The vendor of the project has already secured approval to drill the Southern Target.

“Several substantial iron ore targets”

Forrestania chairman John Hannaford said: “This is a compelling opportunity to explore for hematite in an ideal location with abundant existing infrastructure.

“The option allows us to drill-test the targets extensively prior to exercising, so we can validate the significant iron ore targets modelled by the vendors.

“If the drilling during the option period proves successful, then following exercise of the Option we can proceed directly with the drill out of several substantial iron ore targets.”

 

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