Sundance Resources Ltd has signed an agreement with leading Western Australian-based international drilling services group, Wallis Drilling Pty Ltd, for the 2007 resource drilling program at its 90%-owned Mbalam Iron Ore Project in the Republic of Cameroon.
The agreement lays the foundations for a long-term alliance between Sundance and Wallis Drilling for the provision of drilling and support services in this emerging West African iron ore province.The initial scope provides for up to 20,000m of Reverse Circulation (RC) and diamond drilling to be carried out at Mbalam during 2007, with the program scheduled to commence in April. Under the alliance arrangement, Wallis will mobilise two drill rigs for the 2007 exploration program, whereupon it is envisaged that Wallis will mobilise additional rigs for Sundance’s proposed long-term drilling program at Mbalam.Drilling will commence at the Mbarga Prospect, where previous exploration by the United Nations Development Fund identified massive hematite outcrop. Drilling will subsequently be extended to the Metzimevin Prospect and other priority targets identified within Exploration Permit (EP) 92 from the aeromagnetic survey completed by Sundance in 2006. The Mbarga and Metzimevin Prospects alone have estimated mineralisation in excess of 800 million tonnes, including 218 million tonnes grading +60% iron.Sundance’s Managing Director, Don Lewis, said the agreement reflected a shared vision of the long-term potential of the Mbalam Project, and the surrounding region, as a potentially significant new iron ore province. The agreement provides for the first drill rig to be ready for shipment ex-Perth by mid-February 2007. The RC/diamond rig will be ready for shipment by mid-March 2007. Construction of the access road to the Mbalam Project site is well advanced, with access for transportation of the exploration camp to site anticipated to be available in mid-March 2007. The drilling program represents a key component of the Mbalam Pre-Feasibility Study to be completed in 2007. The program is designed to delineate an initial resource at the Mbarga Prospect of 300 million tonnes of hematite grading more than 60% iron as well as confirming the potential of the Mbalam Project to support a 1,000 million tonne high-grade hematite resource.