As we said before, Tsodilo Resources (TSD.V) has stopped drilling on the Block 1 part of its Xaudum iron ore project tenements, and all drill holes have now been shipped to the lab for analysis. This should result in a maiden NI43-101 compliant resource estimate by the end of July. We are anticipating this resource estimate to show 500 million tonnes of iron ore at an average grade between 25% and 30% Fe, and this should be upgradeable to an end-product containing an iron content of 68%Fe which would result in a premium being paid over the benchmark price of 62%Fe iron ore.

The rig which was used to drill Block one has now moved to drill some holes on a piece of the tenement which is prospective for diamonds, and we hope Tsodilo will release some encouraging exploration results later this year on its diamond prospects. We expect the company to restart drilling on Block 2 of the Xaudum iron ore project later this summer, and this should lift the total resource estimate up to over one billion tonnes.

We will obviously release a full report once the technical report of the maiden resource estimate will have been filed.

Disclosure: The author holds a long position in Tsodilo Resources. Tsodilo is a sponsor of the website. Please see our disclaimer for current positions.

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