JORC Resource
In 2006 international geological consultants, Mackay & Schnellmann Pty Limited estimated a JORC Code compliant global resource at Kulon Progo of 605 million tonnes of magnetite-bearing sediment grading 10.8% Fe for the 22km long by up to 1.8km wide deposit. This is based on 929 holes for a total of 14,468m of air core drilling and equates to an equivalent contained iron of 65 million tonnes of Fe.
This global resource includes a JORC Code compliant mineral resource of 273 million tonnes of magnetite-rich near surface sand grading 14.2% Fe (at a cut-off of 9% Fe) which is estimated to an average 6m depth from surface and contains the equivalent of about 39 million tonnes of Fe, sufficient to support a 1 million tonne per annum pig iron plant for more than 30 years. Almost 92% of this tonnage is in the Measured/Indicated category and is tabled as follows:
| JORC RESOURCE (at a cut-off of 9% Fe) | TONNES (Million) |
|---|---|
| Total Resource | 273 Mt |
| Measured | 115.6 |
| Indicated | 134.9 |
| Inferred | 22.5 |
An additional JORC Code resource of 332 million tonnes of magnetite bearing gravel grading 7.9% Fe exists below the Surface Sand unit of which 89% of the tonnage is in the Measured/Indicated category. Initial testing of these gravels indicates that it is highly likely a commercial grade concentrate can be produced to provide addition feed stock to the plant. The gravel resource is tabled as follows:
| Low Grade Resource | Tonnes (Million) | Grade (% iron) |
|---|---|---|
| Total Resource | 332 Mt | 7.9% Fe |
| Measured | 136 | 7.5% Fe |
| Indicated | 158 | 8.1% Fe |
| Inferred | 38 | 8.6% Fe |
It is also significant to note that the northern areas of the Kulon Progo deposit, together with the deeper parts of the deposit, remain untested and there is confidence that considerable additional tonnage potential exists from these parts of the deposit.
The shallow average depth of 6m of the Kulon Progo Surface Sand deposit allows a more environmentally sensitive development of the JLIP and it is envisaged that the mining of the iron sand deposit will be amenable to simple and cheap dry mining techniques.
The information on this website that relates to Exploration Results and Mineral Resources of the Jogjakarta Pig Iron Project is based on information compiled by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a full-time employee of Indo Mines Limited. Mr Welten has sufficient experience, which is relevant to the style of iron ore mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Welten consents to the inclusion on this website of the matters based on his information in the form and context in which it appears.
