AusQuest Limited today announced the commencement of a substantial Reverse Circulation (RC) drilling program at its Morrisey Magnetite Project in Western Australia’s Midwest mining district. This extensive program, comprising approximately 5,000 meters across at least 22 holes, marks a pivotal step in defining the project's overall magnetite potential and future commercial viability. The drilling efforts are specifically targeting new magnetic and gravity anomalies that bear striking similarities to those that led to the discovery of the successful magnetite resource at the Waterfall Prospect.

The Morrisey Magnetite Project, a key asset under a Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited, is poised for significant expansion. The current drilling campaign will focus on at least five newly identified magnetic/gravity targets. These targets hold the promise of substantially increasing the project's resource base, building upon the promising results already observed at the Waterfall Prospect.

AusQuest’s Managing Director, Graeme Drew, expressed enthusiasm about the recommenced drilling, stating, "We are pleased to be back drilling again at the Morrisey Magnetite Project. Previous drilling at the Waterfall prospect showed us that a high-grade product (>70% Fe) could be produced from the area and we are now looking to add to the Project’s resource base by testing at least five other prospects with similar geophysical signatures."

The strategic importance of this drilling program is underscored by the exceptional outcomes from the Waterfall Prospect. As highlighted in an ASX release on November 25, 2024, Davis Tube Recovery (DTR) test work on drill samples from Waterfall confirmed the ability to produce a premium iron product exceeding 70% Fe. This was achieved using relatively coarse grind sizes (106μm and 75μm), coupled with excellent magnetite recoveries of approximately 34%. These results provide a robust commercial precedent for the Morrisey Project, demonstrating its potential to yield high-quality iron products.

The current RC drilling program is anticipated to conclude within approximately four weeks. Following the completion of drilling, all magnetite samples will undergo DTR test work. This crucial step will ascertain their potential for upgrading into a premium iron product, a key determinant of the project's economic feasibility. The company anticipates the results of this DTR analysis to be available within 6 to 8 weeks after the completion of drilling. The success of this program could significantly enhance the Morrisey Project's profile and its contribution to Australia's iron ore sector.