Perth, Jan 20, 2010 (ABN Newswire) - Havilah Resources NL (ASX:HAV) advises that it has completed the second stage of a detailed gravity survey at the Lilydale iron ore project, targeting the area of highest magnetic intensity of the Braemar Iron Formation. Gravity readings were carried out at 50m spacing along traverses 200m apart, and now cover approximately 8 km of strike of the western limb of the non-outcropping iron formation.

Strong positive gravity anomalies coincide with the areas of intense magnetism along at least 4 km of this strike length.

While the magnetic anomalies show the location of the magnetic iron formation in the subsurface, the gravity peaks indicate where the denser iron rich material within the iron formation is best developed or concentrated. The gravity results suggest that the iron formation is considerably thickened to widths of more than 100m within much of the survey area. Accordingly, the potential for an economic resource tonnage is greatly enhanced in this area and it therefore represents a priority target for an iron ore deposit.

A key factor in determining the economics of any discovery is the quality of the iron ore. There is some cause for optimism in this regard, based on a surface sample containing 58.6% Fe, which was collected from a small isolated outcrop located on the margin of the coincident gravity and magnetic anomalies.

A drilling program is planned to test the high gravity target area in early February immediately upon mobilization of the drill rig to site after completion of the current routine maintenance schedule. In the absence of surface outcrops, the drilling is critical in establishing the geometry and grade distribution of iron ore within the iron formations in the target area.

The Lilydale iron ore projects lies 50 km southeast of Yunta, which is located on the Transcontinental Railway, some 200 km east of Port Pirie. Aeromagnetic anomalies associated with magnetic ironstone indicate at least 20 km of strike of the Braemar Iron Formation lie within Havilah's 100% owned EL 3519.

for the complete Havilah Resources ASX Announcement and Figures, please click the link below:

http://www.abnnewswire.net/media/en/docs/62102-ASX-HAV-176439.pdf