CZR Resources Limited announced it has entered into a binding agreement to acquire granted exploration licence E08/2137 from Fortescue. The Fortescue tenement covers the southern flank of Rio Tinto's Mesa F deposit and is contiguous with CZR's P529 deposit. The combined Fortescue Tenement and P529 deposit (Robe South) are located only 5km south of CZR's existing Robe Mesa deposit.

CZR recently announced a further upgrade to its Robe Mesa Mineral Resource, which is now 45.2Mt at 56% Fe. Consolidating Robe South provides CZR with a potential second source of iron ore for its Robe Mesa project, either as a standalone source or blended with the Robe Mesa deposit, and is consistent with CZR's strategy of growing mine life and production rates for the broader Robe Mesa project. CZR drilled 17 reverse circulation (RC) drill holes on M(A)08/519 (previously prospecting licence P08/529) in 2016, intersecting extensive Channel Iron Deposit (CID) mineralisation.

Drilling was completed on two lines with drill holes spaced approximately 200m apart. CZR announced a maiden Inferred Mineral Resource for the P529 deposit of 4.2Mt at 53% Fe, based on a 50% Fe cut-off grade. The geological model suggests that the P529 deposit represents iron ore that correlates with the lower CID of the nearby Robe Mesa deposit, with some minor iron ore enrichment near-surface that is believed to represent the base of the upper CID unit at Robe Mesa.

The only previous drilling completed on E08/2137 was in 2009 by Red Hill Iron Limited (RHI) under the Cullen Joint Venture, known then as the Rose Bore project RHI completed 11 aircore drill holes to test the Rose Bore CID, on a very wide 800m line and 400m drill hole spacing. RHI intersected CID in 5 of the 11 drill holes, with a maximum thickness of 32m, with the best result 4m at 56.5% Fe from 22m in BBH0002, and thickest intersection of 8m at 55.5% Fe from 22m in BBH0003. These results align with CZR drilling of the P529 deposit and indicate the presence of a higher-grade channel trending over 1.1km of strike within the larger CID system.

Following completion of the transaction CZR intends to commence resource definition drilling on E08/2137. CZR will initially close the drill spacing to 100m in order to better define the higher-grade zone within the CID.