Ann: Wiluna West Hematite Resource - Joyners Find, page-2

re: Ann: Wiluna West Hematite Resource - Joyn... Highlights The Joyners Find deposit continues to deliver exceptionally high grade hematite mineralisation, suitable for a premium DSO product. The very low impurity levels and very high grade gives GWR flexible development options and is considered to be a highly sought after blending product for other iron ore producers. The excellent results have enabled the Board to confidently develop a strategy to commence production of the high grade, low impurity Iron Resource at Joyners Find, by the end of the 2010 Calendar Year.
Joyners Find - Early Production
The recent drilling has confirmed that GWR‟s Joyners Find deposit contains some of the highest grade iron available anywhere in Western Australia. These results confirm the Board‟s decision to implement the Company strategy of developing a premium DSO mine based on Joyners Find.
The Company believes that there is a viable market for a premium boutique product sourced from the iron resources at Joyners Find. This material is defined as „clean‟ which could be sold as blending material to other producers, especially those that possess ore with high levels of contaminants such as phosphorous (P), chlorine (Cl) and sulphur (S).
The Company has developed a strategy to commence mining the high-grade low impurity Resource at Joyners Find. A program of metallurgical testwork, resource modelling and mine design (including pit optimisation studies), has commenced. The next steps include submitting a mining proposal to the Department of Mines and Petroleum and investigating and modelling the commercial viability of early production being exported through Esperance and other potential locations.
Due to the advanced understanding of Joyners Find and the initially modest scale of production, GWR is confident that production can begin prior to the end of the 2010 Calendar Year.
High Grade Hematite
The Company has now a completed a 3,353m infill RC drilling program at Joyners Find. Results to date demonstrate the deposit contains exceptionally high grade hematite mineralisation, suitable for a premium DSO product.
Whilst many of the assay results are still to be reported, a number of exceptionally high grade hematite intercepts have been achieved which are almost pure hematite. These occur together with many other very encouraging results.
Results include:
WWRC1750, 09m @ 69.3% Fe, 0.3% SiO2 and 0.01% P from 74m
WWRC1752, 08m @ 66.0% Fe, 1.3% SiO2 and 0.02% P from 86m
WWRC1763, 34m @ 62.0% Fe, 3.0% SiO2 and 0.01% P from 23m
WWRC1764, 36m @ 65.6% Fe, 1.4% SiO2 and 0.05% P from 20m
WWRC1765, 09m @ 69.0% Fe, 0.4% SiO2 and 0.01% P from 45m
The full list of recent drilling results are presented in Table 1.
These results continue to underpin GWR‟s confidence in the high-grade, low impurity mineralisation at Joyners Find.
All the listed results occur on infill lines demonstrating the continuity and tenor of the high grade mineralisation at the deposit. Additionally, the recent drilling has extended the strike length of the mineralisation by an additional 500m to the south. The Company expects recent drilling program results will allow it to convert a significant portion of the current Inferred Resource Estimate to Indicated status which will then allow detailed mining studies to commence.
Low Impurities
Recent drilling results have confirmed the high grade nature of the mineralisation. The exceptionally high grade Intercept in WWRC1750 of 69.3% Fe contains almost no impurities, with 0.3% SiO2, 0.2% Al2O3 and importantly only 0.01% P. The levels of P in this hole are ten times less than the industry threshold of 0.1% P. The impurity levels of the entire Joyners Find deposit are well below other deposits in the region.