- Magnum Mining and Exploration (MGU) completes the first phase of channel sampling at its Buena Vista green pig iron project in Nevada, USA
- As part of the program, MGU sampled massive, high-grade magnetite outcrops, which will be used to support a new program focussed on outlining a possible direct shipping ore (DSO) source
- This has the potential to pave the way for an early, low-cost start-up for mining and shipping from the project
- The company is now planning to launch a reverse circulation program to focus on massive magnetite outcrop associated with the West Pit and Iron Horse prospects
- Magnum Mining was last trading at 1.9 cents at midday AEST
Magnum Mining & Exploration (MGU) has completed the first phase of channel sampling at its Buena Vista green pig iron project in Nevada, USA.
As part of the program, MGU sampled massive, high-grade magnetite outcrops at the project, which lies 160 kilometres east-north-east of Reno.
This work will support a new program focussed on outlining a possible direct shipping ore (DSO) source that may allow an early, low-cost start-up for mining and shipment from the project.
The Buena Vista mine has not been comprehensively mapped since 1960 due to extensive earthworks, stockpiles and dumps hampering efforts for modern mapping. Despite this, the historical mapping still displayed occurrences of massive magnetite.
Magnum said all previous drilling focussed on deeper, high-tonnage targets while ignoring the lower tonnage, near-surface or surface potential.
As such, it has now implemented a drilling contract for shallow DSO drilling.
The reverse circulation program will focus on the massive magnetite outcrop associated with the historical West Pit, along with the Iron Horse prospect — a yet-to-be-drilled area of extensive surface magnetite mineralisation.
The drilling campaign is expected to commence shortly.
The news follows MGU’s March quarterly report, which saw the company hit net cash outflows of $1.03 million for the three months to March 31, 2023.
The company spent the quarter focused on its Buena Vista project, defining up to 540 million tonnes of iron ore via the modelling of aeromagnetic data.
Magnum Mining shares were last trading at 1.9 cents at midday AEST.