Yalgoo Iron Ore Project
The Venus Yalgoo Iron Ore Project area of 234 km2 covers Yilgarn Craton Archaean Banded Iron Formation units interpreted by Venus to be equivalent to those hosting the Gindalbie Metals Limited/Ansteel Karara Iron Ore Project magnetite and DSO resources to the south of the project area. In September 2009 Gindalbie announced government approval for the development of the Karara Iron Project and in March 2010 announced the finalisation of a long-term off-take contract, valued at more than US$65 billion over the life of the project.
Venus Exploration Licence E59/1508-I (containing all the high priority iron ore targets including the extensive Joker hematite/goethite DSO target), E59/1504, P59/1904 and P59/1887 are granted Yalgoo tenements; E59/1552 and E59/1611 remain pending.
The Yalgoo Project is subject to a formal farm-in agreement with HD Mining & Investment, a subsidiary of Shandong Provincial Bureau or Geology & Mineral Resources (SDGM) involving an $8m sole spend by HD Mining to earn a 50% interest in the Iron Ore Project. Once the joint venture is formed if Venus elects not to contribute it will receive a 4.5% gross iron ore royalty from any production from the Yalgoo Iron Ore Project.
Venus Resources has contracted 20,000m of RC percussion and diamond drilling scheduled to commence at the beginning of May 2010. An initial 4000-5000m RC drilling program is designed to test the high priority Joker hematite-goethite (DSO) iron ore target, as well as several magnetite BIF targets. The drilling is concentrated on the two high priority Joker DSO target areas where apparently stratabound hematite/goethite iron enrichment outcrops relatively poorly on mulga-covered slopes approximately 200m east of the outcropping Joker BIF unit. Drilling of these two high priority targets is designed to be at 160 m line spacing with holes drilled along the lines at a nominal 80m hole spacing; infill holes to 40m will be drilled if the initial drill holes intersect substantial iron enrichment. A follow-up RC and diamond drilling program of approximately 15,000m has been designed to undertake in-fill drilling of the Joker DSO target, and to test other DSO and magnetite targets including the high priority Bilberatha Hill BIF-hosted magnetite target. The Bilberatha Hill BIF unit in the vicinity of Bilberatha Hill is assessed as having an open-pittable magnetite target potential of 268 Mt to 420 Mt grading 30-36% Fe (ASX announcement 21 April 2010).