AusQuest Uncovers New High-Grade Magnetite Zones at Morrisey Project
AusQuest Limited has identified three additional high-grade magnetite prospects at its Morrisey Project in Western Australia, with premium iron grades exceeding 70% Fe and promising recovery rates. These findings enhance the project's commercial appeal as it advances under a strategic alliance with South32.
- Three new magnetite prospects confirmed with >70% Fe grades
- Magnetite liberated at coarse 75 micron grind size
- Davis Tube Recovery rates often exceed 30%
- Project located near Mullewa with rail access to Geraldton port
- Further drilling and economic evaluation planned under South32 alliance
Expanding the Morrisey Magnetite Footprint
AusQuest Limited (ASX – AQD) has announced encouraging exploration results from its Morrisey Magnetite Project in Western Australia’s Midwest mining district. Following up on earlier findings, the company’s recent drilling and beneficiation testing have revealed three additional prospects capable of producing premium-grade magnetite iron ore with iron content exceeding 70%. This development significantly broadens the scope of the project’s resource potential.
The new prospects; Murchison South, Sandfly, and Waterfall North; feature magnetite hosted predominantly within high-grade banded iron formations (BIFs). These BIFs have demonstrated excellent magnetite liberation at a relatively coarse grind size of 75 microns, a factor that could reduce processing costs and enhance economic viability. Davis Tube Recovery (DTR) tests have shown magnetite recoveries averaging around 30%, with some intervals reaching as high as 45%, underscoring the quality of the mineralisation.
Strategic Location and Infrastructure Advantage
The Morrisey Project benefits from a strategic location approximately 120 kilometres north of Mullewa, with established road and rail infrastructure providing efficient access to the Port of Geraldton. This logistical advantage is critical for future development, potentially facilitating cost-effective transport of concentrate to export markets.
In addition to the BIF-hosted magnetite, two other prospects; Deep Bore and Bilga Rocks; feature magnetite within mafic host rocks. While these show slightly lower iron grades (around 65% Fe) and recoveries (10-15%), they add to the overall resource diversity and exploration upside of the project.
Next Steps Under Strategic Alliance Agreement
AusQuest is advancing the Morrisey Project in partnership with South32 Ltd through a Strategic Alliance Agreement (SAA), under which South32 may earn up to a 70% interest by investing US$4.5 million. The recent test results will inform the next phase of work, including further drilling to delineate resource extents and an early-stage economic assessment.
Managing Director Graeme Drew highlighted the significance of the findings, noting the potential for premium-grade magnetite production from coarse grind sizes, which is attractive from a processing standpoint. He emphasized that while further drilling is needed to fully define the resource, the project’s prospects are promising and warrant continued evaluation.
These results build on AusQuest’s ongoing efforts to unlock value from the Morrisey Project and position it as a potentially competitive iron ore source in the region. The company plans to keep the market updated as it progresses through the evaluation stages.
Bottom Line?
AusQuest’s expanding high-grade magnetite discoveries at Morrisey set the stage for a critical resource evaluation phase under South32’s strategic partnership.
Questions in the middle?
- What will further drilling reveal about the combined resource size and continuity?
- How will South32’s investment influence the pace and scale of project development?
- What are the projected economics of processing magnetite at coarse grind sizes in this region?
