Murchison Metals Limited (ASX:MMX) Mineral Resource Update On The Rocklea Iron Ore Project

Perth, Sep 30, 2009 AEST (ABN Newswire) - Murchison Metals Limited (ASX:MMX)(PINK:MUMTF) is pleased to announce an updated Mineral Resource estimate for its 100% owned Rocklea Iron Ore Project in Western Australia.

Since announcing a maiden resource in February 2009, Murchison has conducted a comprehensive infill drilling program, with a focus on the eastern part of the project and a higher grade zone identified as part of previous drilling campaigns.

The latest estimate confirms Murchison's view that Rocklea is developing as an attractive Channel Iron Deposit (CID), with the potential for a proportion of the resource to be suitable for direct shipping. The deposit has a maximum total depth of 43m, demonstrates consistent widths and is close to existing and planned rail infrastructure, located only 35km from the mining town of Tom.

Recent large diameter diamond drilling has enabled the measurement of more than 300 in-situ bulk density values from representative locations across the deposit. This has led to a revision of the wet density assumed in the estimate from 2.6 to 2.4 t/m3, resulting in a marginally lower tonnage than that reported as part of the initial resource estimate in February 2009.

SRK Consultants was engaged by Murchison to complete the grade estimation. SRK has used a recoverable resource estimation method known as uniform conditioning. When compared to the initial resource estimate of February 2009, significantly higher grades have been estimated.

Murchison considers that a higher grade portion of the resource is likely to be suitable for direct shipping, and this will form a focal part of the scoping study that is currently underway and due for completion by the end of 2009.

Also as part of the scoping study, Promet Engineers is currently supervising metallurgical testwork aimed at identifying a suitable simple processing route to upgrade additional tonnages.

Importantly, the improved density estimate, closer spaced drilling, analysis of quality assurance data and the improved grade estimation has allowed part of the Mineral Resource to be classified as Indicated, commensurate with the higher level of confidence in the tonnage and grade estimate.

Murchison Executive Chairman Paul Kopejtka said the Company was pleased with the speed with which the Rocklea Project has progressed.

"This highlights the ability of Murchison to develop and bring on line projects in a timely and efficient manner, underpinned by strict investment criteria and strong financial disciplines," said Mr Kopejtka.

"A prime example of this was the accelerated development of the Jack Hills Stage 1 project which came into production in early 2007, with the rapid development program delivering strong upfront cash flows for Murchison.

"In the last 12 months, Murchison has taken the Rocklea project from greenfields exploration to a significant Indicated Mineral Resource.

"Rocklea is shaping up to be an attractive CID deposit, with shallow geometry that may flow on to low stripping ratios which could have positive implications for future mining costs."

The scoping study is due for completion at the end of 2009.

For the complete Murchison Metals ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/61509-ASX-MMX-461879.pdf

Contact

Paul Kopejtka Executive Chairman Murchison Metals Ltd Tel: +61-8-9492-2600