Gindalbie Metals has announced a further substantial upgrade in mineral resources for the Mungada Hematite Project in Western Australia to 27.1 million tonnes grading 61.7% iron.

This represents a 19% increase on the resource announced in early July of 22.8 million tonnes grading 61.9% iron.

In addition the company has estimated a product inventory of 14.3 million tonnes grading 61.5% iron for the purpose of the Bankable Feasibility Study on Mungada.

The inventory contains the company's initial probable ore reserve of 10.9 million tonnes grading 61.7% iron.

The upgrade is a result of in-fill, extension and deposit definition drilling, metallurgical testwork, geotechnical studies, pit designs, and mining studies carried out on 10 hematite deposits at Mungada - Blue Hills North, Karara South, Karara East, Mungada South, Skyhook, Tor, Wagonwheel, Gully, Terapod and Terapod West.