Fenix Resources hopes to add to iron ore resources from adjoining Pharos JV

Fenix Resources Ltd (ASX:FEX) is seeking to grow iron ore resources around its Iron Ridge operations in WA’s Mid-West and has appointed Scorpion Minerals Ltd (ASX:SCN) to conduct exploration at the Pharos JV Project. The JV area totals around 373 square kilometres and is immediately adjacent and contiguous to the Iron Ridge operation, with iron ore targets totalling 15 strike kilometres already identified. Fenix recently requested that Scorpion manage, plan and execute the early phase of exploration at the JV with the agreed program totalling $350,000 over six months to October 31, 2021. Exploration program This early phase of exploration will include detailed airborne photography and magnetics, detailed geological mapping, rock chip sampling and reverse circulation (RC) drilling of targets identified in a program of about 1,000 metres. Fenix can earn 70% of the iron ore rights by sole funding exploration and resource definition drilling to identify up to 10 million tonnes. Alternatively, Fenix can earn 70% of a portion of the tenements by funding a feasibility study on a resource of at least 1 million tonnes of iron ore. Location of Scorpion's Pharos/Mt Mulcahy projects in the Murchison area of WA. Scorpion director Bronwyn Barnes said: “Scorpion is very pleased to have agreed an exploration program with Fenix for the Pharos Iron Ore JV. "The comprehensive program has been designed to quickly identify high-grade iron ore occurrences at Pharos. "With Fenix recently announcing shipments totalling 220,000 tonnes from their high-grade Iron Ridge Project for the March quarter at an average price of US$156/tonne and C1 costs averaging A$93/tonne, both Scorpion and Fenix are keen to advance exploration that can expand the iron ore potential of this exciting region.” Targets identified Two target areas have been identified in or adjacent to the Weld Range at Iron Ridge Extension and Ulysses on E20/948, which is being transferred to Scorpion Minerals from holder Element 25 Ltd (ASX:E25). A third area has been identified at Milliwarrie in the south of the Pharos project area on E20/953, where Scorpion has an option to purchase 100% from Element 25. Iron Ridge Extension was identified through interpretation of available air magnetic surveys that highlighted a south-western extension of the favourable iron formation stratigraphy. The Ulysses target has resulted from the interpretation of historic aircore, RC and diamond drilling targeted at gold and base metal geochemical anomalies that also intersected significant widths of weathered Banded Iron Formation beneath an area south of the Weld Range.