Adelaide, June 16, 2006 AEST (ABN Newswire) - Centex Metals Limited (ASX: CXM) will immediately implement its planned drilling programmes following successfully raising more than $8 million in an Initial Public Offer (IPO).
The former private iron ore development company has already expended over $2.3 million to take many of the Eyre Peninsula projects to an advanced exploration stage.
Centrex Metals Limited is to list on the ASX as Australia's newest pure iron ore explorer. The Company - which plans to develop a suite of new iron ore projects located throughout Eyre Peninsula in South Australia - is expected to list in the first week of July.
"This is a strong result that reflects the quality of the iron ore resources and exploration potential that exists on the Company's extensive tenement portfolio," Managing Director, Mr Gerard Anderson, said today.
"Unlike many other new iron ore plays in Australia, our hematite and magnetite deposits and prospects are located near major road and rail networks and close to either the deep port of Port Lincoln or near deep water sites along the east coast of Eyre Peninsula. Converting exploration success to production outcomes will not be accompanied by the high infrastructure costs confronting many other new participants in this sector."
Success for Centrex Metals will result in the development of only the second major iron ore undertaking in South Australia.
The State's other active iron ore mines are located in the Middleback Range and include the Iron Knob-Iron Duke area west of Whyalla, also on Eyre Peninsula.
Centrex Metals' tenements cover over 2,000 square kilometres of prospective iron ore tenements stretching from near Port Lincoln on the southeast coast, to central Eyre Peninsula and north to the Western Middleback Ranges.
Mr Anderson said the Company would spend a minimum of $2.4 million on exploration and development work on the Eyre Peninsula tenements within the next 12 months.
"Our tenements host one known hematite deposit, the Wilgerup deposit, and extensive magnetite rich and hematite rich banded iron formation deposits and prospects," Mr Anderson said.
"Our initial focus will be to define hematite resources at Wilgerup that have acceptable iron ore grades and low levels of impurities suitable as direct sale to export markets."
Project summaries
Centrex Metals' projects include the Greenpatch, Bald Hill, Iron Mount, Carrow, Wilgerup, Cockabidnie, Bungalow and Stony Hill targets - with the hematite focus on Wilgerup and Greenpatch.
Located 30 kilometres southeast of Lock, Wilgerup has an Inferred hematite resource of 7.9 million tonnes grading 59.8% Fe. The deposit's northern pod is open along strike.
"There are some 30 interpreted hematite targets in the immediate Wilgerup area as defined from aeromagnetics and gravity surveys. The top six of these targets aggregate to over 6 kilometres in prospective strike," Mr Anderson said.
At Greenpatch, 10 kilometres northwest of Port Lincoln, hematite has been found at surface containing up to 60% Fe.
"The Company also has several potentially significant magnetite deposits including the Carrow and Bungalow deposits and the Bald Hill prospect. Drilling of the magnetite deposits will be undertaken in conjunction with the Wilgerup hematite drilling to define the best deposit for early mine development," Mr Anderson said.
Directors of Centrex include Chairman, Mr David Lindh, Mr Norton Jackson and Mr David Klingberg.
Source:
Peter Gill
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: 08 8234 9555
Fax: 08 8234 9566
Mb: 0417 784 059
Contact
Gerard Anderson
Centrex Metals Limited
TEL +61 404 672 393
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