Perth, Oct 31, 2008 AEST (ABN Newswire) - Magnetic Resources (ASX:MAU) announce the quarterly activities for September 2008 with highlights including expanded iron ore search and new gold tenement southeast of Lake Grace.
Highlights:
- Wheatbelt iron ore search expanded, with tenure over target areas increased to 1,565sq km.
- A new tenement applied for over an 11km zone of gold anomalism southeast of Lake Grace.
- Preliminary geochemical sampling of aeromagnetic targets prospective for gold and/or nickel carried out at Twenty Six Mile Rock, Rock Dam Hill, Joe's Joint, Lake Gulson, Holt Rock, Dumbleyung, Ned's Corner and No.7 Tank.
- Anomalous uranium at Lake Seabrook and Lake Eva being assessed for roll front style mineralisation
SOUTHERN YILGARN IRON ORE SEARCH
As recently reported (ASX release 11 September 2008), Magnetic Resources has applied for several tenements covering major magnetic anomalies in the wheatbelt region of WA. The new tenements cover areas of strong magnetic response south of Quairading, north of Lake Grace and east of Dumbleyung. These applications bring the area of tenements covering iron ore targets in the region to 1,565sq km.
Reconnaissance sampling and geological inspections have been carried out over several of these occurrences with sample analysis in progress. Some of the occurrences show evidence of metamorphic re-crystallisation of banded iron formation which may improve the liberation characteristics of the magnetite fraction.
The strategic location of these targets close to existing railway infrastructure with connections to ports is likely to significantly enhance the economic potential of any iron ore discoveries.
TAMPIA NORTH (Magnetic earning up to 100%)
Geochemical sampling to complete the first pass coverage of a 60 km strike length of the Tampia Shear Zone, has been suspended until cropping on farm land has been completed in November. Sampling of iron targets is scheduled to commence this quarter, particularly on the northern (Norpa) tenement where banded iron formations are known to occur close to a rail line
TWENTY SIX MILE ROCK (Magnetic earning up to 100%)
Results of scout geochemical soil sampling of aeromagnetic targets have returned a peak gold value of 6ppb compared to a background of less than 1ppb. Several samples returned elevated Cu, Ca, Ni, Zn, Pb, Bi and U responses. Further sampling is required in order to assess the significance of these results.
ROCK DAM HILL (Magnetic earning up to 100%)
A 1087m, 94-hole scout geochemical drilling programme has been carried out over aeromagnetic targets, with samples currently being analysed.
LAKE SEABROOK AND LAKE EVA (Magnetic earning up to 100%)
Reconnaissance soil and lake sediment sampling over airborne radioactive anomalies has identified strong multi element responses in both lake sediments and soils. Uranium values of up to 40ppm occur in association with elevated Cu, Pb, Zn, Co, Mo and Bi values, suggesting the presence of reducing chemical conditions within or adjacent to a salt lake. Further sampling will be required to determine the extent of the geochemical anomalism and to assess the potential for roll front style uranium mineralisation.
JOE'S JOINT (Magnetic earning up to 100%)
Wide spaced sampling (151 samples) over aeromagnetic targets have returned gold values up to 10ppb compared to a background of less than 1ppb. The geochemical responses were generally subdued, probably because of extensive windblown sand cover. A programme of shallow geochemical drilling is planned in order to further assess the aeromagnetic targets.
LAKE GULSON AND HOLT ROCK (Magnetic earning up to 100%)
A 252m, 69-hole geochemical drilling programme was carried out over aeromagnetic targets obscured by surficial cover. The geochemical responses were subdued as the drilling was only able to penetrate the upper part of the cover sequence because of a shallow water table.
DUMBLEYUNG (Magnetic earning up to 100%)
177 reconnaissance geochemical samples were taken over aeromagnetic targets identified a weak gold trend (peak 9ppb compared to a background of less than 1ppb).
The gold trend embraces the Nippering gold occurrence (best historical drill intercept of 1m @ 2.06g/t Au from 1m).
NED'S CORNER (Magnetic earning up to 100%)
76 reconnaissance geochemical samples were taken over aeromagnetic targets during the quarter. Gold values did not exceed background and other values were low except for copper (peak value 200ppm) and molybdenum (peak value 15ppm), compared to background of 5ppm and 1.5ppm respectively. The significance of the anomalous values is being investigated.
No. 7 TANK (Magnetic earning up to 100%)
A 330m, 75-hole geochemical drill traverse was completed over an aeromagnetic target. A gold and multi element zone was identified with a peak gold response of 10ppb compared to a background of less than 1ppb.
HOLLAND ROCKS (Magnetic 100%)
A 94 sq km exploration licence was applied for about 40km southeast of Lake Grace to cover an anomalous gold and multi element corridor identified from reconnaissance roadside sampling of an aeromagnetic target. The anomalous corridor can be traced for about 11km and appears to coincide with an interpreted shear zone.
OTHER PROSPECTS
Following a review of exploration results, exploration licences at Dourdi and Binti Bore were relinquished.
CORPORATE
ASX code; MAU
Cash position; A$ 1.5million.
Issued capital; 39,296,742 fully paid ordinary shares of which 6,877,947 are escrowed until 5 April 2009, with the balance being fully tradeable. 18,945,572 unquoted partly paid shares (20 cents unpaid) of which 7,816,947 are escrowed until 5 April 2009.
5,500,000 unquoted options exercisable at 25 cents after 5 October 2007 and before 5 April 2009, all of which are escrowed until 5 April 2009.
Contact
George Sakalidis
Managing Director
Phone: (08) 9485 2410
Mob: 0411 640 337
Roger Thomson
Executive Director
Phone: (08) 9485 2410
Mob: 0419 969 183
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