Iron Ore Holdings has upgraded its mineral resource at its Iron Valley project in Western Australia's Pilbara region by 50 per cent.
The junior iron ore producer said scoping studies indicated 67 million tonnes of resource, with a further 65.2 million tonnes inferred, for a total of 132.3 million tonnes.
That is up from the previous 88.2 million tonnes in resource.
The updated resource includes a high grade direct shipping ore (DSO) component of 85.9 million tonnes, the group said.
"Initial scoping studies indicate that the resource will support a 5-10 million tonne per year mine development with the potential to be a low-cost, low strip ratio operation," Iron Ore Holdings said.
"Recently completed diamond drilling at Iron Valley will provide additional upside to this already outstanding resource, with a further updated resource expected to follow in August 2009.
"Iron Ore Holdings shares were placed in a trading halt on Monday ahead of the announcement.
The Kerry Stokes-controlled company last traded at 84¢, up 7¢ cents, or 9 per cent from Friday's close.
AAP
