Sundance Resources (ASX:SDL) has released the results of an updated resource calculation at its Mbalam-Nabeba iron ore project in Africa. There was a small 4% increase in the high-grade resources at the project which increased to 805 million tonnes of iron ore with an iron-content of approximately 57% Fe.
The real eye catcher is the substantial increase of the lower grade resources which increased by almost 1.6 billion tonnes. The total tonnage in the itabrite hematite zone is now 5.6 billion tonnes at an average grade of just over 33% Fe.
The resource update is obviously good news, but the ‘the bigger, the better’ era is over, and Sundance will have to come up with a development plan that would have to confirm the viability of the project at the current low iron ore prices as well as generating an attractive internal rate of return.
> Click here to go to Sundance’s website
Disclosure: The author holds no position in Sundance Resources. Please see our disclaimer for current positions.
