The drilling is also expected to discover specular hematite by covering iron rich rocks.
IMX said that magnetic anomalies were found at 25km southeast of Cairn Hill magnetite-copper-gold mine and 30km east of the Snaefell prospect.
The recent ground magnetics surveys have identified four targets with a greater magnetic intensity than the nearby Tomahawk prospect.
IMX Resources managing director Neil Meadows said, "This new phase of exploration drilling is designed to test the strongest targets with the best potential for the quality high grade coarse magnetite that makes the Mt Woods Magnetite Project unique.
"This is consistent with our strategy to demonstrate the potential of the numerous untested magnetic targets within our tenements, and to significantly increase the resource base of the Mt Woods Magnetite Project to make it more attractive to a potential development partner."
The program will be completed by November 2012 and the results will be available in the first quarter of 2013.
