Australia-based mining company IMX Resources increased its total exploration target tonnage to 1.5 billion tons -1.8 billion tons iron rich magnetite formations at the Mt Woods Magnetite Project in South Australia.

The increased target was reached by adding exploration target tonnage by 168 million tons – 214 million tons resulted through drilling of six prospects.

IMX Resources managing director Neil Meadows stated that the updated results increases the exploration target beyond one billion and reflects the significant potential of Mt Woods project.

"IMX believes this project has excellent development potential, with the ability to produce high-grade, very coarse-grained magnetite concentrates that are in strong demand globally and are attracting premium prices from steel producers," added Meadows.

Significant magnetite iron intersections from five prospects near the Tomahawk prospect were revealed from twenty-five reverse circulation holes that totaled 3,486m, drilled during October and November 2012.

These holes also showed higher average iron grades, minimal oxidation of magnetite and shallower overburden compared to the Snaefell deposit.

In addition, it added, "The Company now plans to complete a program of Davis Tube Recovery analysis to indicate the iron content of magnetically separated concentrates generated from these samples primarily as these smaller, potentially higher yielding targets could represent opportunities in terms of resources to exploit on a smaller scale start-up project."