The Yalleen project, 50km southeast of Pannawonica in the Robe Valley area of the Pilbara, Western Australia, is 70% held by API with the remaining 30% owned by Helix.

API, a 50:50 JV between Aquila and American coal trader and miner AMCI, is earning into the Yalleen tenement by sole funding $1.5 million in exploration at the project

The Yalleen resource estimate is split across two deposits, Kumina Creek and Robe Exit, both channel iron deposits

Kumina Creek is the larger of the two, boasting an inferred resource of 68.7 million tonnes at 56.16% iron, 6.6% silica, 4.2% alumina and 0.058% phosphorus, with an 8.23% loss on ignition.

Robe Exit’s resource is at 43.5Mt at 54.65% iron, 6.84% silica, 4.58% alumina, 0.065% phosphorus and 9.97% loss on ignition.

Both deposits were estimated at 50% cut-off grades by Runge but API said it would re-issue a resource statement after modelling the deposit via ordinary kriging, as it has done at the Red Hill and Mt Stuart JVs.

Drilling at the prospect is continuing and Helix said it believed there was scope for the further definition of more iron ore deposits.

API has several other deals in the Pilbara with South African diamond major De Beers and Perth-based juniors Red Hill Iron and Cullen Resources.

In March, API announced that the tenements under these agreements – dubbed the West Pilbara project – together hosted a 493Mt hematite iron ore resource.

Shares in Helix were given a handy 10.5c or 45% boost yesterday to 34c on the news, but had cooled 5c or almost 15% this morning.

Shares in Aquila were last trading at $16.47, down 14c.