Magnum Mining and Exploration (ASX:MGU) confirms high iron ore grades at Buena Vista, USA

• Magnum Mining and Exploration (MGU) reports one outcrop sample grading at more than 65 per cent iron from its Buena Vista project in Nevada, USA
• A drill hole intercept hit iron at a grade in excess of 50 per cent
• The results come from a recently concluded 14-hole RC drilling campaign
• Results will be used as the company’s feasibility study update progresses
• MGU shares are up 7.84 per cent, trading at 5.5 cents at 10:38 am AEST

Magnum Mining and Exploration (MGU) has reported geotechnical confirmation of high-grade iron at its Buena Vista project in Nevada, USA.

Shallow assays from 14 drill holes recently handed back to the company are from where today’s best hit has been borne – an outcrop sample grading up to 67.4 per cent iron.

Thick zones of magnetite ore have been confirmed in drilling with the first drill holes at the Iron Horse prospect returning grades of up to 52.5 per cent iron.

The company is exploring magnetite outcrops on-site so as to develop a fast-value-return pathway to shipping ore direct.

Now that it knows it’s got high-grade iron and where to find it, Magnum will move ahead with an ongoing feasibility study update building on the freshly injected confidence this data provides.

“These results tell us what we thought we knew, they confirm that we do have high-grade outcroppings near the surface and this data will be fed into the feasibility study we are upgrading at the moment,” MGU CEO Neil Goodman said.

“We are targeting a fast-tracked approach to produce 500,000 tonnes per year of high-grade and near-high-grade concentrate for sale to Asia.”

In the background, the company is also working on an infill drill run which allows the company to develop a short-term mine plan.

The Buena Vista project sits within a geological region practically littered with magnetite outcrops – giving Magnum no shortage of outcrop targets to continue investigating.

Progress has been considerable to date, as the company appointed a project manager for Buena Vista back in mid-June.

MGU shares were up 7.84 per cent, trading at 5.5 cents at 10:38 am AEST.