Western Desert Resources is securing complete control over the Tianda iron ore lease in the Northern Territory under a sales and purchase agreement with Tianda Resources.
Tianda EL 25688 is one of two tenements that make up the Mountain Creek Project.
The agreement recognizes that Western Desert has earned a 70% interest in Tianda EL 25688 through a spend of USD 850,000 and is acquiring the remaining 30%.
EL 25688 has been the subject of preliminary ground investigations only. First pass reconnaissance drilling earlier this year comprising 81 shallow reverse circulation holes was completed on three prospect areas.
Assays from this drilling have confirmed the presence of shallow oolitic hematite mineralization up to 60.95% iron. A detailed airborne gravity survey flown last year over the tenement area also identified numerous areas as potential iron ore prospects.
Western Desert plans to carry out in 2013 a major drilling program to establish the extent and tenure of the hematite mineralization at the Mountain Creek Project area.
