(MENAFN - ProactiveInvestors - Australia) Strike Resources' (ASX: SRK) associate Cuervo Resources (CNSX: FE) continues to unveil thick intersections of magnetite mineralisation in drilling at the Bob 1 target zone within the Cerro Ccopane iron ore project in Peru.
Significant intercepts from the final two holes were 112.5 metres at an average grade of 49.3% iron and 35.4 metres at an average grade of 52.4% iron.
An initial resource estimate is expected to be completed in late February 2013.
Massive magnetite mineralisation has now been intersected over at least 1,200 metres of strike, and remains open in all directions.
The Bob 1 magnetic and gravity target extends over a total strike length of about 3 kilometres, with extensive outcrops of massive magnetite present along the bulk of the length of the target " the largest yet identified on the Cerro Ccopane property.
Rock chip samples from these outcrops averaged over 63% iron and the prospect is geologically similar to the Orcopura, Huillque and Aurora areas where previous drilling has outlined iron ore resources totalling 179 million tonnes at an average grade of 48.2% iron.
Cuervo has completed the current program of 181 drill holes for about 4,500 metres of drilling as an initial test of Bob 1.
The drill holes were directed to test the surface exposures of magnetite mineralisation and the gravity and magnetic targets from surface to a depth of around 200 metres, although selected holes were drilled to more than 400 metres.
The results to date are considered encouraging due to the continuity of the iron ore along and across strike as well as at depth.
Strike advanced Cuervo C5.25 million to fund the drilling campaign and, in return, was granted warrants that can be converted into around 31.5% of Cuervo's shares, on an undiluted basis.
The Cerro Ccopane project lies within 20 kilometres of Strike's Santo Tomas (Cusco) iron ore project.