Forrestania Resources (ASX:FRS) has decided not to go ahead with the acquisition of the Koolyanobbing Iron Ore Project in Western Australia after receiving the results of due diligence drilling.
The company held an option to acquire the project from Netley Minerals.
However, Chairman and interim CEO John Hannaford says following results of the due diligence drilling program at the Koolyanobbing Project, Forrestania has agreed with the vendors not to exercise the option to acquire Netley and its iron ore project.
“The project scope, scale and potential has been downgraded significantly as a result of low grade iron ore results,” he says.
“The company assessed the results and revised target areas and the additional costs of continuing with the project, and determined that it was no longer in the best interests of shareholders to continue.”
The drilling program comprised nine holes for 687m, aiming to test the potential for iron ore mineralisation in close proximity to Mineral Resources’ (ASX:MIN) Koolyanobbing Mine.
The best intersections included 2m @ 44.6% iron.
Hannaford says Forrestania is now focused on exploration at its existing gold and copper projects, where drill programs are being planned for the coming quarter.
The company is exploring for lithium at its Forrestania and Eastern Goldfields Projects in Western Australia, as well as in Canada’s James Bay region.
The Forrestania Project hosts lithium, gold and nickel prospects in close proximity to the 189-million-tonne Mt Holland Lithium Mine, the historic 1-million-ounce Bounty gold deposit and the operating Flying Fox, and Spotted Quoll nickel mines in the prolific southern Forrestania Greenstone Belt.
Forrestania is also focused on the copper potential of its Eastern Goldfields Project and has a pipeline of lithium, copper, gold and rare earths prospects to be tested across its portfolio.
Write to Angela East at Mining.com.au
Images: Forrestania Resources
