Perth, Jan 29, 2009 AEST (ABN Newswire) - The directors of Pilbara explorer, Warwick Resources Limited (ASX:WRK) are pleased to announce an initial Inferred Mineral Resource at its 100% owned Caramulla South iron ore project as follows:
Caramulla South Project - Inferred Mineral Resource at 50% Fe Cut-off
-------------------------------------------------Tonnes Fe% SiO2% Al2O3% P% S% LOI% CaFe%-------------------------------------------------13,800,000 53.9 8.6 5.4 0.04 0.03 8.1 58.7-------------------------------------------------
Caramulla South lies approximately 60km to the east of Newman in Western Australia's Pilbara region and is strategically located midway between BHP Billiton's large Jimblebar iron ore mine and railway and Ferraus Ltd's emerging Davidson Creek project.
This follows the announcement in September 2008 of an initial Inferred Mineral Resource of 11.7Mt @ 57.5% Fe for the Company's Jimblebar Range project, located 13km to the west of Caramulla South.
Warwick Resources' Managing Director Bruce McQuitty said that the initial 13.8Mt Inferred Mineral Resource at Caramulla South was a significant addition to the Company's iron ore resource base in the Newman region.
"Caramulla South is the second resource to emerge from the Company's strong portfolio of iron ore projects near Newman. We expect to undertake further resource estimates in the first half of 2009".
"The Company is well placed financially to continue to explore its exciting portfolio of exploration projects and to take advantage of exploration and consolidation opportunities in the region", Mr McQuitty said.
The Caramulla South deposit consists of two shallow zones of iron mineralisation, each approximately 1,000m long by 150-200m wide, located at either end of a 4km long east-west striking strip of Marra Mamba Formation near the northern margin of the exploration licence. The western zone is outcropping, while the eastern zone lies between 12m and 47m below surface, beneath a layer of detrital iron. Both zones of mineralisation dip shallowly to the north.
The mineralisation is mostly "hardcap" material - a hard, vuggy, dense near-surface layer of goethite-haematite which characteristically has a lower iron grade but a superior lump to fines ratio than the softer, deeper Marra Mamba mineralisation. The Company intends to investigate the potential for cost beneficiation techniques, such as dry screening, to improve the iron grade of this resource.
The Caramulla South resource estimate was prepared by Bosta Pratama, who is a full time employee of Quantitative Group (QG). QG are an internationally recognised, independent consultancy group specialising in resource evaluation. This estimate was prepared under the supervision of, and with technical review by, Chris De-Vitry1 who is a full time employee of QG. Chris De-Vitry acts as the competent person for the resource estimate while Bruce McQuitty2 acts as the competent person in respect of the geological interpretation and data quality on which the estimate is based, as well as for reporting of exploration results.
Resources were estimated from the results of 60 RC drill holes for a total of 2,577m. The drilling pattern is approximately 100-200m x 30m.
In addition, results have recently been received from RC and diamond drilling undertaken at Caramulla South during the latter half of 2008. This drilling was designed to infill areas of low drill density and to target extensions to the eastern zone. Significant intersections include:
- 34.6m @ 57.65% Fe from 2m depth (WRKDD001);
- 18.7m @ 58.28% Fe from 31.6m depth (WRKDD002b);
- 26m @ 56.32% Fe from 20m depth (WRKRC237);
- 30m @ 54.51% Fe from 8m depth (WRKRC238); and
- 20m @ 54.62% Fe from 38m depth (WRKRC230).
These results have not been incorporated into this resource estimate and will be included in the next resource update. The net effect of the recent drill results is expected to be a small increase in both tonnage and grade.
Further results from drilling undertaken last quarter on the Company's iron ore projects are expected to be released to the market progressively over forthcoming weeks.
Contact
Bruce McQuitty
Warwick Resources Limited
Phone: +61-8-9481-8181
Mobile: +61-409-929-121
Email: bmcquitty@warwickresources.com.au
Website: www.warwickresources.com.au
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