Minerals explorer Murchison Metals Ltd (ASX: MMX) said on Thursday that it is upgrading the mineral resource estimate on its Jack Hills magnetite and hematite iron ore project in Western Australia.

The company said that at the moment, the Jack Hills mineral deposit is estimated to contain 3.22 billion tonnes with 32.3 percent iron, adding that the figures include a jump in the direct shipping ore component to 139 million tonnes with an average grade of 56.6 percent iron.

Murchison Metals said that the numbers effectively represent a soar of up to 220 million tonnes in mineral resources as compared to the previously announced figures.

The company further clarified that the new estimate is inclusive of the initial mineral resource estimates appreciated from the company's Brindal deposit, located just three kilometres from Jack Hills, as Murchison said that a new study on annexing the additional deposit to its mine expansion project is being closely evaluated by the company.

The study was made in light of the presence of more untested exploration targets in the project area that further bolstered Murchison's future resource expansion goals in the Jack Hills mine, which started operations in 2006 as the company's joint venture project with Japanese firm Mitsubishi Corporation.

As of 1315 AEST on Thursday, Murchison Metals shares were trading at $1.86, picking up by 6.5 cents or 3.62 percent on its value from previous trading sessions.