confirmation of 0.96 to 1.2 billion tonne

PO Box 833 Subiaco WA 6904
T + 61 8 9212 9888
F + 61 8 9212 9800
[email protected]
www.epsilonenergy.ABN 87 089 531 com.au
082
ASX/MEDIA RELEASE
23 May 2008
INVESTOR BRIEFING UPDATE:
CONFIRMATION OF 0.96 TO 1.2 BILLION TONNE
PILBARA IRON ORE TARGET
Due to the significant share price movements in the Company’s securities following the
release of an Investor Update on Wednesday May 21st 2008 entitled “Investor Update: 1
Billion Tonne Pilbara Iron Ore Target” the Company requested a trading halt to ensure there
was no misinterpretation of that announcement.
The Company confirms that the exploration target set by the company at the Mardie Iron Ore
project (Mardie) has been based on geophysical data, geological mapping and computer
modeling, as well as interpretation by both independent and internal geoscientists. The
potential quality and grade is conceptual in nature and there has been insufficient exploration
to define a mineral resource and it is uncertain if further exploration will result in the
determination of a mineral resource.
The target referred to is a BIF (Banded Iron Formation) geophysical anomaly, derived from
Airborne Magnetic data, flown over 400m line spacing’s and at a nominal height of 60m. The
anomaly has been interpreted to be in the range of 8km in length, 2km in width.
Independent geological assessment interpreted the anomaly as the Brockman Formation
and underlying Joffre member, which has an average thickness of approximately 400m in the
Hamersley sequence.
This data was further modeled to target the highest value shallow zone, extending over a
length of between 400m and 500m, widths of up to 2000m and thickness of 400m. This
modeling generated a conceptual exploration target, of between 0.96 billion tonnes and 1.2
billion tonnes for this zone only.
The company has not referred to any grade within the target, however as previously
reported, the company has referred to the magnetite anomaly as being independently
interpreted to be the Brockman Formation and of similar quality to that found at the nearby
Balmoral deposits. The Balmoral South deposit, located approximately 25km to the northeast,
contains an independently reported grade of approximately 31.4% Fe and a tonnage of
1.1billion tonnes in the indicated and inferred categories and is being developed by
Australasian Resources Limited (ASX: ARH).
Once grant of the Mardie tenement has been finalised, the Company will perform a 50km2
ground gravity survey over the anomaly to better define drilling targets at the highest value
shallow zone. The Company will then undertake an appropriate RC or Diamond drilling
program once detailed targets have been generated from this survey.
Shareholders are referred to the previous announcements made on the Mardie project on 15
April 2008 and reiterated in the March Quarterly Report.
For further information please contact:
Matthew Gauci BSc. MBA.
M: +61 (0)417 417 907
PO Box 833 Subiaco WA 6904
T + 61 8 9212 9888
F + 61 8 9212 9800
[email protected]
www.epsilonenergy.ABN 87 089 531 com.au
082
COMPETENT PERSON DETAILS
The geological information in this report that relates to Exploration is based on information compiled by Stefan Gawlinski who is a
member of Australian Institute of Geoscientists. Stefan Gawlinski is Exploration Manager of Epsilon Energy Limited. Stefan Gawlinski
has appropriate qualifications and sufficient knowledge and experience that is relevant to the style of mineralisation and type of deposit
under consideration, and to the exploration activity that he is undertaking. Stefan Gawlinski consents to the inclusion in this report of
the matters based on his information in the form and context that it appears.