western creek delivers more glor

Western Creek delivers more glory

Claire Svircas
Wednesday, 11 March 2009

THE news Giralia Resources has increased iron ore resources at its Western Creek project in Western Australia’s Pilbara region by a further 28% has sparked investor interest today.

The 28% increase brings the total inferred mineral resource to 52.4 million tonnes grading 56.7% iron.

The resource was upgraded after the results of a 71-hole drilling program in December were incorporated into the current inferred resource of 40.7Mt grading 57.3% iron, released in November.

The additional 11.7Mt is largely based in the North Marra Mamba zones.

The best intersections included 36m at 58.0% iron from 16m downhole and 18m at 60.7% iron. Another hole intersection recorded 22m at 58.7% iron from 6m.

This latest global resource also includes higher-grade zones of 32.6Mt at 58.3% iron at a 56% lower cut-off grade, or 16.5Mt at 59.6% iron at a 58% lower cut-off grade.

The Perth-based explorers said the mineral resource comprises thick zones of flat-lying or shallow-dipping iron ore mineralisation, at a maximum depth of 50m from the natural land surface, likely to result in very low waste to ore ratios.

The 100% Giralia-owned Western Creek deposit adjoins BHP Billiton Mount Newman iron ore mining leases in the Western Ridge area and directly adjoins BHP Billiton’s Marra Mamba Formation hosted Silver Knight iron ore deposit.

Meanwhile, at the newly acquired Homestead prospect about 10km north of Western Creek, the better intersections from Giralia's 22-hole drilling program include 20m at 55.2% iron, 14m at 55.5% iron, and 8m at 56.1% iron in the Marra Mamba iron formation.

Further drilling is planned in mid-2009 to test the Homestead prospect.

Giralia was trading up 6.15% at 34.5c in morning trade.