Forrestania (ASX:FRS) options ironclad neighbour to MinRes operations

Forrestania (ASX:FRS) options ironclad neighbour to MinRes operations

May 28, 2024 Off By Jack Baker

Forrestania Resources has signed an option deal to fully acquire private explorer Netley Minerals and its iron ore mining rights immediately next to Mineral Resources’ (ASX:MIN) Koolyanobbing iron operations in the Western Australian Yilgarn area.

The Perth-based explorer has a three-month option period to test seven high-priority targets spotted up by Netley, with a program of works in the books and heritage clearance expected to allow for mid-year drilling in the eastern Wheatbelt region.

Targets all sit on the confirmed banded iron formations trends which account for significant levels of global production, and any discovery is set to be well served by the infrastructure used by its major neighbour.

Forrestania Chairman John Hannaford said it was compelling opportunity to explore for high iron, easily processed hematite ore in an ideal location and provides shareholders a near-term opportunity with significant scalability.

“The option allows us to drill-test the targets extensively prior to exercising, so we can validate the significant iron ore targets modelled by the vendors,” Hannaford said.

“If the drilling during the option period proves successful, then following exercise of the Option we can proceed directly with the drill out of several substantial iron ore targets.

“The location is close to our Southern Cross and Forrestania areas, and provides an immediate drilling opportunity, with significant upside.”

Netley’s iron ore rights hold more than 30 kilometres of combined banded iron formations horizons strike and remains essentially unexplored for all resources but iron.

Iron operations Koolyanobbing  has been in intermittent operation since the 1960s and has been an active and important producer since its acquisition and refurbishment by Mineral Resources in 2018.

And iron has been a money-maker with a trading price continually defying bearish predictions from commodity analysts.

It can still be difficult for junior companies to fund even high-profile iron ore projects with good access to pivotal infrastructure, but Forrestania will now move on making a discovery with proof of profitability in a major next-door neighbour.

The company will work with Netley to fast-track drilling of the major hematite targets after paying the option fee and see if the signs are right for a full acquisition.

Read more on iron ore in the junior sector: Iron ore demand growth looks inevitable

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