Perth, April 5, 2006 AEST (ABN Newswire) - Olympia Resources Ltd (ASX: OLY) is pleased to announce it has discovered a new heavy mineral resource area on its tenements in Southwest WA that increases its existing resource assets by 30% and has the potential to extend mine life for the Company.
The new resource, Yalyalup, located in Southwest Western Australia, contains an inferred mineral sands resource of 19.9 million tonnes of sand ore containing 1.1 million tonnes of heavy mineral (HM) at an average grade of 5.5% HM.
Olympia's Managing Director Mr Peter Gazzard said: "This new resource has the potential to extend the length of time that Olympia can mine mineral sands in Southwest WA past the 8 year life of the Keysbrook mine".
"This latest discovery was made as a result of Olympia's model for mineral sands exploration and confirms the high prospectivity of the Company's Southwest exploration tenements in Western Australia. Olympia is continuing exploration in the area with the expectation of finding further resources," Mr Gazzard said.
The Yalyalup resource is located 15 kilometres east of the Ambergate Project and has a mineral suite typical of the Southwestern deposits.
Mineralogy Dune1 Dune2 Beach------------------------------------------------------Ilmenite 19.7 20.0 36.7Altered Ilmenite 22.0 22.1 48.3Magnetic Leucoxene 37.1 34.7 0.9Rutile 1.1 0.7 0.7Non Magnetic Leucoxene 5.9 4.3 0.5Zircon 11.5 14.0 8.1------------------------------------------------------TOTAL Valuableheavy Mineral (VHM) 97.3 95.8 95.2------------------------------------------------------
The drilling program, which commenced in February 2006 drilled 32 holes to establish an inferred resource using a 2% HM cut-off grade. The table below details the inferred resource for the Yalyalup area.
Inferred Resource
Ore (t) HM% Slimes% HM (t)Inferred---------------------------------------------------------Beach Placer 6,062,000 5.7 21.0 345,000Dune 1 6,399,000 6.5 17.1 415,000Dune 2 7,469,000 4.4 15.9 326,000---------------------------------------------------------TOTAL 19,930,000 5.5 17.8 1,086,000
The Olympia heavy mineral sands resource inventory has been updated to include the latest Yalyalup resources.
Olympia Resources Ltd Heavy Mineral Sands Resource Inventory April, 2006
Ore (t) HM% Slimes% HM (t)Keysbrook*Measured 56,000,000 2.6% 8.0% 1,450,000Indicated 5,000,000 2.5% 7.9% 130,000Inferred 3,000,000 2.5% 8.3% 85,000----------------------------------------------------------Ambergate#Measured 3,122,000 6.2% 16.3% 192,400Indicated 3,696,000 5.9% 12.9% 219,000----------------------------------------------------------The Loop#Inferred 11,500,000 7.2% 26.5% 820,000----------------------------------------------------------Keysbrook South*Indicated 13,600,000 2.24% 11.0% 305,000----------------------------------------------------------North Dandalup#Inferred 10,700,000 4.5% 25% 490,000----------------------------------------------------------Coolup*Indicated 2,000,000 6.0% 9.3% 120,000----------------------------------------------------------Yalyalup*Inferred 19,900,000 5.5% 17.8% 1,100,000----------------------------------------------------------Total 128,518,000 3.8% 13.3% 4,911,400----------------------------------------------------------
# Reported in Olympia Prospectus
* Resource prepared by John Baxter RPGeo, Olympia Resources Ltd
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
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