AusQuest’s Morrisey Project Faces Critical Davis Tube Recovery Test Results Soon

AusQuest’s Latest Drilling Success

AusQuest Limited (ASX – AQD) has unveiled encouraging exploration results from its Morrisey Magnetite Project, situated in the Midwest mining district of Western Australia. Recent reverse circulation drilling has intersected significant zones of coarse-grained magnetite in five out of six targeted prospects, expanding the known inventory beyond the previously identified Waterfall Prospect.

The company’s reconnaissance drilling program, designed to investigate magnetic and gravity anomalies, revealed multiple intervals with magnetic susceptibility values exceeding 200 x 10^-3 SI units, a strong proxy for magnetite content. These findings suggest a continuity of magnetite mineralisation across the Murchison South, Murchison, Sandfly, Waterfall, and Bilga South prospects.

Commercial Potential and Next Steps

Magnetite, an iron oxide mineral, can be concentrated through magnetic separation to produce high-grade iron products. AusQuest’s prior test work at the Waterfall Prospect demonstrated the ability to produce a premium iron concentrate exceeding 70% iron content using relatively coarse grind sizes, a key factor in reducing processing costs.

All magnetite-bearing samples from the recent drilling have been dispatched to Intertek Genalysis in Perth for Davis Tube Recovery (DTR) testing. These tests will determine the amenability of the material to beneficiation and the potential to replicate the premium product quality observed previously. Results are anticipated within the next four to six weeks, after which AusQuest plans to release detailed assay data and drill cross-sections.

Strategic Collaboration and Regional Context

The drilling program is funded under a Strategic Alliance Agreement with South32, which holds the right to earn a 70% interest in the project by investing US$4.5 million. This partnership underscores the project’s potential and provides AusQuest with the financial backing to advance exploration efficiently.

Geologically, the Morrisey Project lies within the Narryer Terrane, a structurally complex region hosting high-grade metamorphic rocks and banded iron formations. The discovery of coarse magnetite within this setting aligns with the company’s strategy to target iron ore mineralisation that can yield premium concentrates.

Outlook and Market Implications

AusQuest’s Managing Director, Graeme Drew, expressed optimism about the extent and continuity of the magnetite mineralisation encountered. The company’s ability to confirm and expand these zones could position Morrisey as a significant iron ore asset, particularly given the premium quality of the magnetite product indicated by earlier test work.

Investors will be watching closely for the upcoming DTR results, which will provide critical insight into the project’s commercial viability. Should these tests confirm high recoveries and concentrate grades, AusQuest may be poised to advance towards resource definition and feasibility studies, potentially attracting further investment interest.