Perth, Oct 21, 2008 AEST (ABN Newswire) - Pilbara explorer, Warwick Resources Limited (ASX:WRK) today announced the grant of two key 100% owned iron ore tenements located near Newman:
E52/2160 "Western Creek" has an area of 25km2 and is located 22km to the west of Newman and only 15km from BHP Billiton's Whaleback iron ore mine. The tenement adjoins BHP Billiton's Prairie Downs group of mining leases.
The main target at Western Creek is a 3km long outcrop of iron enriched Marra Mamba Formation which was subject to RC drilling by BHP/Renison Ltd JV in the early 1990's. Several significant iron ore intersections were obtained from shallow depths, including 36m @ 59.2% Fe and 21m @ 59.2% Fe (see Tables 1 & 2). Western Creek also contains channel iron and banded iron formation targets.
P52/1238 "McCamey's South" is located 33km to the east of Newman. The tenement adjoins the entire 23.5km long southern margin of BHP Billiton's McCamey's Monster mining lease which includes the Jimblebar iron ore mine. Almost one third of the 63 hectare tenement overlies outcropping or buried Marra Mamba Formation. The Marra Mamba Formation dips moderately to the north, towards BHP Billiton's tenure.
Warwick Resources Managing Director Bruce McQuitty said the Western Creek and McCamey's South projects were important additions to Warwick's expanding iron ore exploration portfolio.
"Western Creek and McCamey's South are strategically located near existing mines and infrastructure", Mr McQuitty said.
"Both projects feature iron ore mineralisation at shallow depths and will be relatively inexpensive to evaluate."
RC drilling at Western Creek and McCamey's South scheduled to commence in the current quarter, subject to obtaining regulatory approvals and aboriginal heritage clearances.
Western Creek Exploration Targets
The only prior exploration on the Western Creek project area was undertaken by BHP as operator of a joint venture with Renison Ltd from 1992 to 1996 (WAMEX item No. 8813). BHP's exploration focused on an area of outcropping Marra Mamba Formation in the northwest corner of Warwick's E52/2160. BHP completed some broadly spaced RC drilling targeting the Marra Mamba Formation. Warwick's exploration personnel have verified that 14 of the former BHP's drill holes are located on E52/2160. Of these, 8 drill holes returned significant iron ore intersections as listed in Table 1.
Table 1: E52/2160 - significant intersections from previous RC drilling by BHP/Renison Ltd JV
------------------------------------------------Hole ID Easting Northing From To Interval Fe% (m) (m) (m)------------------------------------------------EXR301 746189.16 7413737.72 9 45 36 59.20EXR302 746047.14 7413648.88 21 42 21 59.16EXR303 745128.75 7413790.92 15 24 9 57.07EXR411 746076.19 7413695.60 19 37 18 58.22EXR412 745691.94 7413780.90 16 25 9 57.53EXR413 745700.43 7413702.99 7 19 12 55.83EXR414 745131.29 7413725.71 0 4 4 55.50EXR415 744478.04 7413822.70 10 16 6 57.30------------------------------------------------
* 3m sample intervals, 55% Fe cut-off, maximum internal waste = 6m. Data sourced from WAMEX Item 8813. Drill hole collar locations have been resurveyed by Warwick's field personnel.
The weighted average grade of these intersections is 58.2% Fe (Table 2). Together with the low impurities this indicates potential for direct shipping ore.
Table 2: Average interval and weighted average grades of intersections
------------------------------------------------Average interval (m) Fe% SiO2% Al2O3% P% LOI%------------------------------------------------14.38 58.16 4.27 3.23 0.051 8.44------------------------------------------------
A mineralised area of approximately 322,000m2 has been outlined by BHP's drilling, however the mineralisation remains open to the east, to the south and at depth.
In addition to the demonstrated Marra Mamba iron ore mineralisation, Warwick has identified five separate CID's on E52/2160, totalling over 6km in length. The CIDs occur as mesas, typically 50-150m wide, capped with pisolitic iron mineralisation featuring diagnostic fossil plant fragments.
A steeply dipping unassigned BIF unit, displaying surficial iron enrichment, outcrops to the south of the Marra Mamba Formation. The BIF unit is of the order of 10-30m wide and strikes in an east-west orientation semicontinuously for over 7km. The unit exhibits strong iron enrichment in outcrop.
Warwick Resources is undertaking further work to establish exploration target sizes at each of the above targets.
Warwick's iron ore projects near Newman are:
Jimblebar Range contains an Inferred Mineral Resource of 11.7Mt @ 57.6% Fe, with low levels of impurities (2.2% Al2O3, 0.06% P). The deposit consists of two zones of haematite-goethite mineralisation which extend from near surface to over 70m depth. The deposit is located only 8km from BHP Billiton's large Jimblebar iron ore mine and railway.
Caramulla South comprises an east-west striking strip of Marra Mamba Formation, up to 180m wide and 4km long, near the northern margin of the exploration licence. Drilling to date has returned significant intersections, including: 36m @ 57.73% Fe from 2m depth, 22m @ 59.29% Fe from 4m depth, 21m @ 56.3% Fe from 15m depth and 11m @ 59.2% Fe from 9m depth.
Western Creek contains a 3km long outcrop of Marra Mamba Formation with iron enrichment. RC drilling by BHP/Renison Ltd JV in the early 1990's obtained significant iron ore intersections from shallow depths, including 36m @ 59.2% Fe and 21m @ 59.2% Fe. The project also contains CID and enriched BIF targets.
McCamey's South adjoins BHP Billiton's McCamey's Monster mining lease and contains Marra Mamba iron ore targets.
Woggaginna has extensive areas of surficial iron enrichment, developed over banded iron formation confirmed by detailed mapping and sampling. Grades up to 63.0% Fe and low contaminants indicate DSO potential.
Jimblebar CID - a 3km long mesa from 75m to 150m wide capped by pisolitic iron mineralisation. An initial drill traverse completed across the CID demonstrated that the channel contains up to 7m of iron-rich pisolite grading to 57% Fe. Phosphorous levels are very low, ranging from 0.020% to 0.025%.
Ten Mile CID is a recently identified channel iron target over 3km in length and up to 400m wide, with potential for further mineralisation beneath shallow cover. Initial rock chip sampling returned grades up to 58.5% Fe.
Grassroots Iron Targets - Areas of surficial iron enrichment, developed over banded iron formation, have been mapped at Black Hills. Multiple targets for channel iron mineralisation have been identified on the Company's tenements.
Competent Persons Statements
The information in this report to which this statement is attached that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Bruce McQuitty, who is a Member of the Australian Institute of Geoscientists. Mr McQuitty is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr McQuitty consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Contact
Bruce McQuitty
Warwick Resources Limited
Tel: +61-8-9481-8181 / Mobile: +61-409-929-121
Email: bmcquitty@warwickresources.com.au
Website: www.warwickresources.com.au
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