NFE.V - Northern Iron Corp.

[Jack_Aster]

Northern Iron finishes surveys at Griffith


2015-07-27 07:51 MT - News Release


Mr. Basil Botha reports

NORTHERN IRON CORP. COMPLETES MAGNETIC SURVEY ON THE GRIFFITH PIT

Northern Iron Corp. has completed approximately 11 line kilometres of ground magnetic surveys on the Griffith property.

The survey successfully outlined the broad trend of the iron formations within the North Griffith pit. Depth estimates to mineralization and precise widths were not made. The data provide a guide to the next phase of drilling.

A total of 10.99 line kilometres of ground magnetic surveys were completed using a GSM-19 Version 7 Overhauser magnetometer system.

Magnetic readings were downloaded daily and corrected with the base station data.

Readings were taken every 20 metres along 100-metre-spaced traverses originally set at 118-degree orientation. Portions of some lines, in particular at their eastern extremities, could not be surveyed due to the slope of the pit. The survey outlined the main iron formation previously partially extracted, and reveals the main north-northeast-to-northeast (folded) trend. The southern continuation of the mineralized body is seen extending off pit; the anticlinal sequence is observed as a broader expression, and the east limb, trending south to southeast appears as a near-vertical sequence in the southeast corner of the pit and grid. Correlation with the geology indicates a steep westerly dip for the main iron formation. Overall increase in magnetic intensity to the south is a function of the approximate 35-degree plunge of the iron formation and possibly higher-grade material. The syncline-anticline-syncline geometry is imprecisely defined, due to said plunge, partial extraction of the north portion of the fold set, and possibly to previously unknown faulting by east-southeast-trending discontinuities. The data provide a guide to the next phase of drilling, much of which would be contingent on the dewatering of the pit. A partial dewatering of the pit would provide reasonable access for in-pit delineation drilling of the main iron formation, with collars on the D bench (level).

Drilling on bench D, about 100 m vertically below datum, would test the southern extension of the main iron formation both along strike and down plunge. All holes would be drilled downdip, but drilling from the west would not be as cost-effective due to the layout of the benches.

Drilling of the south extension outside of the pit would be easily achieved, using pre-existing roads, although the extent of flooding in the area should be assessed.

Similarly, there should be some additional testing of the east limb, in the far southeast corner of the pit.

It is vital to test the south extension and down-plunge continuity of the major folded iron formation in the centre south of the pit. For this reason, it is necessary to dewater the pit past level F. Some surface drilling could commence whilst the pit is dewatered. The continuity of the iron formation, based on the recent survey, provides reasonably accurate definition of the target. Also, drilling at this stage would provide some estimates of grade and width to at least near-surface iron content. It is stressed that such intercepts may not be representative of anticipated higher grades at depth.

Further, the results from any subsequent drilling will have an impact of future pit geometry, and it is conceivable that an alternative to significant aerial pit expansion would be access south by a broad ramp, eliminating the need to expand benches B and C, and possibly D. Estimating costs associated with the proposed drilling is contingent on locations on particular bench levels and hence total lengths of individual drill holes. In-pit drilling would benefit from pads on E rather than D benches, reducing several drill hole lengths by up to 100 metres. Strike extensions to the south should be targeted based on the results of the in-pit drilling.

The technical information in the news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by its qualified person, Paul Sarjeant, PGeo (Ont.), qualified person has prepared, supervised the preparation of approved the scientific and technical disclosure in the news release.