Havilah Resources (ASX: HAV) has revealed a massive iron ore intersection from drilling at its Grants Basin iron ore project in January.
The 488m thick intersection graded 24.57% iron and extended from 126m to 614m down hole and confirms earlier handheld Niton XRF readings.
“As expected, the laboratory assays have confirmed the exceptionally thick 488m intersection of iron formation in the Grants Basin, with a slightly higher grade of 24.57% iron over this interval compared to previously announced handheld XRF analyses,” Havilah technical director Dr Chris Giles said.
“These assays are also broadly consistent with the assays in the adjacent reverse circulation drill hole, meaning our results have now been confirmed by two different drilling methods as well as by two different assaying methods.”
Dr Giles said the company’s drilling had only covered about 25% of the identified anomaly.
He added it gives Havilah an idea of the scale and extent of the iron ore mineralisation.
“Our next step is to carry out an infill resource drilling campaign, with the objective of defining a JORC resource as part of the planned prefeasibility studies.”
As a result of the ongoing drilling program, Havilah has released an exploration for the project between 3.47-3.79 billion tonnes grading 2.39-27.6% iron ore.
To fund its exploration at Grants and other assets, Havilah reported it had secured a “transformational” deal last month with the GFG Alliance, and its member OneSteel Manufacturing Pty Ltd (trading as SIMEC Mining).
The deal allows for Havilah to draw on up to $100 million in funding to advance exploration at Grants Basin, as well as the company’s other projects in South Australia’s Curnamona Craton.
Funding will be carried out as staged equity investments in Havilah, with the GFG Alliance to eventually hold a 51% stake in the company.
By midday, shares in Havilah had rocketed almost 20% to $0.155.