Various studies by Shree Minerals (ASX: SHH) are being progressed as the company moves towards making applications for various approvals for the Nelson Bay River project, in early 2011.
The Nelson Bay River project is situated in Tasmania close to road and port facilities, and is the company's primary objective for exploration and development.
The recent resource upgrade at Nelson Bay River represents a landmark for the company and an important stepping stone to anticipated production in 2012.
No identified Aboriginal heritage sites or areas of potential archaeological sensitivity were found to be present within the designated bounds of the study area after an assessment of the proposed mine development was completed by independent consultants.
However, the company believes any considered heritage assessment would conclude that the site does not contain wilderness values worthy of incorporation into any Tarkine wilderness listing.
Shree recently announced an upgrade of the project with inferred and indicated JORC resources increased to 12.6 million tonnes at 36.1% iron, including 7.8Mt at 38% magnetite.
The resource includes a direct shipping ore (DSO) hematite resource of 1.2 Mt at 51% which contains 0.50Mt of DSO, and at 57.8% iron and 0.70Mt of beneficiable goethite-hematite.
Exploration work will look to follow up recent drilling of near surface iron oxide mineralisation in an attempt delineate DSO, and additional magnetic targets will be targeted.
The DSO is low in deleterious elements, and the magnetite resource is capable of producing blast furnace pellets (BFF) and dense media magnetite (DMM).
The project has the potential for a low capex, low opex near term and a DSO lump volume over 65%.
The magnetite resources cover approximately 400 metres in strike length including approximately 1.0 kilometres of hematite-goethite mineralisation.
Recent ground magnetic surveys indicate that the mineralised strike length may be in excess of 2.3 kilometres. Mineralisation remains open along strike and at depth.
In addition to the Nelson Bay River deposit, four additional targets have been identified from airbourne magnetic surveys on the project area and remain to be drill tested.
Shree raised A$3.5 million early in 2010 to explore a diversified portfolio of exploration tenements in Tasmania for gold, base metals, coal and iron ore across a variety of geological settings.
Five of the licenses are situated in western Tasmania, one in south central and one in the south east.
With the outlining of a 1.2Mt DSO resource, project economics are also likely to be further enhanced, along with any resource upgrades and results from the minserve feasibility study moving into mid 2011.