18 August 2008 AMAZON: FIRST IRON ORE ASSAY RESULTS Mount Magnet...

18 August 2008 AMAZON:

FIRST IRON ORE ASSAY RESULTS

Mount Magnet South NL is pleased to announce the completion of the Phase 1 iron ore exploration drilling campaign across the Amazon prospect. Mr Matt Shackleton, the Managing Director of Mount Magnet South NL, said: “While maintaining focus on gold exploration and the interpretation and modelling of the Curara Well ore bodies, the rock chip assays previously reported encouraged further exploration for iron ore on Amazon. “The Company is now in the extremely fortunate position of having two very strong assets. The Amazon project comprises a 17 kilometre strike length along two parallel BIF ridges some 600 metres apart. Combined, the zone is up to 1.5 kilometres wide in parts. The Board of Mount Magnet is considering carefully the options available to the Company to best realise the value inherent in a magnetite deposit of this size.” The program comprised 41 reverse circulation (RC) holes to depths up to 168m across the two largely parallel banded iron formations (BIFs) running through the Company’s Kirkalocka Project area. (Figure 1) The first assays returned included 59 metres at 29.2% Fe, 50 metres at 24.7% Fe and 43m at 25.4% Fe. (Table 1) Samples from one hole (08KLRC019 – Figure 2) were sent for Davis Tube Recovery analysis. DTR test work on these samples indicated the deposit could produce a blast furnace quality concentrate with concentrated iron grades of up to 68% at industry standard grind sizes and silica content. (Table 2) The low levels of phosphorous (<0.02%) enhance the positive attributes of the deposit. Samples were taken from the base of the oxidised zone into unaltered BIF. Mount Magnet South is focussing current efforts on progressing its Curara Well prospect to scoping study stage. Greenfields exploration at Foothills will commence on conclusion of the entitlements issue currently being offered. Matt Shackleton
Managing Director
Road to Mining 2010 Suite 2, Ground Floor, 10 Outram Street Post Office Box 946 T +61 8 9213 8900 E [email protected] West Perth, Western Australia 6005 WEST PERTH WA 6872 F +61 8 9213 8901 W www.mountmagnet.com.au Page 2 of 2
Phase 1 Drilling Program – Amazon
The Phase 1 program across the Amazon prospect comprised 41 RC holes for 4,207m.
Table 1: Amazon prospect iron ore assays to date
Hole Number
Interval (m)
Results
From:
To:
Width:
Fe%
SiO2%
P%
08KLRC003
0
59
59
29.20
49.27
0.06
08KLRC007
89
109
20
29.10
46.19
0.10
08KLRC016
11
38
27
24.38
48.55
0.04
08KLRC017
10
25
15
30.03
48.14
0.03
08KLRC018
11
33
22
27.29
48.99
0.05
08KLRC019
80
130
50
24.72
53.57
0.07
08KLRC020
93
136
43
25.42
51.53
0.06
08KLRC021
32
55
23
33.01
29.57
0.01
Table 2: DTR test work results from hole 08KLRC019 samples*
Head grade Fe %
Mass recovery %
Calculated Fe recovery %
Concentrated Fe %
Concentrated SiO2 %
Concentrated P %
26.28
34.33
81.10
62.39
12.35
0.01
*All samples were ground to 90% passing 28 microns
Figure 1: 1VD RTP aeromagnetic image showing the banded iron formation and area of rock chipping and location of Phase 1 RC drilling
3 Road to Mining 2010 Suite 2, Ground Floor, 10 Outram Street Post Office Box 946 T +61 8 9213 8900 E [email protected] West Perth, Western Australia 6005 WEST PERTH WA 6872 F +61 8 9213 8901 W www.mountmagnet.com.au Page 3 of 3
Figure 2: Drill hole collar locations showing 08KLR019 sent for Davis Tube Recovery analysis
The information in this report that relates to exploration results is based on information compiled by Mr. John Vinar who is a member of the Australian Institute of Mining and Metallurgy and is an employee of Mount Magnet South NL. Mr. Vinar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results. Mr. Vinar consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.