ASX and Media Release
9 September
2008
INITIAL INFERRED RESOURCE OF 11.7 Mt @ 57.6% Fe AT JIMBLEBAR
RANGE
KEY POINTS
?
Initial 'Inferred Mineral Resource' of 11.7Mt @ 57.6%
Fe at Jimblebar Range
?
Potential to increase resource by targeting extensions
and identifying new areas of BIF enrichment
?
Strategic location only 8km from near BHP Billiton's
Jimblebar mine and rail head
?
Company to investigate development opportunities
The directors of
Pilbara explorer, Warwick Resources Limited (ASX:WRK) are
pleased to announce an initial Inferred Mineral Resource at its
100% owned Jimblebar Range iron ore project as follows:
Jimblebar Range
Project - Inferred Mineral Resource at 50% Fe Cut-off
|
Tonnes
|
Fe%
|
SiO2%
|
Al2O3%
|
P%
|
S%
|
LOI%
|
CaFe%
|
|
11,700,000
|
57.6
|
7.0
|
2.2
|
0.06
|
0.04
|
7.7
|
62.4
|
Jimblebar Range
is located near Newman in Western
Australia's Pilbara region and is only 8km from BHP
Billiton's large Jimblebar iron ore mine and railway (Figure 1 location plan).
It is one of a suite of iron ore projects being developed by Warwick Resources
in the region.
The deposit consists
of two keel-shaped zones of supergene haematite-goethite mineralisation
overlying a south-easterly dipping sequence of banded iron formation (Figure
2). The northern zone is approximately 400m long by 200m wide, up to 58m thick
and is open to the northeast. The southern zone is approximately 500m long by
100m wide, up to 60m thick and is open to the south. The mineralisation
displays a strong vertical zonation, with higher grade (+60% Fe) mineralisation
concentrated in the lower part of each zone (see Figure 3).
Significantly, there
is potential to increase the size of the resource by targeting extensions to
the deposit (as outlined in Figure 2) and by identifying new areas of iron
enrichment on BIF ridges that lie parallel to, and along strike from the
resource.
The deposit has
several characteristics that are favourable for mining including low levels of
impurities, a thin layer of overburden (0-26m) and minimal groundwater. The
majority of the deposit lies above the groundwater table.
The Company is
examining all avenues for the development of the resource.
Warwick Resources'
Managing Director Bruce McQuitty said that the initial 11.7 Mt inferred
resource at Jimblebar
Range was an important
milestone for shareholders.
"Jimblebar
Range is the first resource
to emerge from the Company's strong portfolio of iron ore projects. We will assess
potential development options for the deposit while aggressively exploring our
other iron ore targets with a view to growing our resource base" Mr McQuitty
said.
The resource estimate was prepared by Chris
De-Vitry1 who is a full time employee of Quantitative Group (QG). QG
are an internationally recognised, independent consultancy group specialising
in resource evaluation. Chris De-Vitry acts as the competent person for the
resource estimate while Bruce McQuitty2 acts as the competent person
in respect of the geological interpretation and data quality on which the
estimate is based. Details of the estimation methodology are contained in
Annexure 1.
Resources were estimated from the results of
52 RC drill holes for a total of 3,651m. The drilling pattern is approximately
100m x 30m. The collar locations of the drill holes are shown in Figure 2.
A further 13 RC drill holes have been planned
to test potential extensions to the mineralisation at Jimblebar
Range. This drilling is
scheduled for October. In addition, core from two recently completed diamond
drill holes will be cut and submitted for assay.
The Company expects to receive assay results
from a further two RC drill holes at Jimblebar Range and from Phase 2 RC
drilling at Caramulla South in the near future. Results will be released to the
market as soon as they come to hand.
For further information, please contact:
Warrick Hazeldine
Bruce McQuitty
Purple
Communications
Warwick Resources Limited
Phone: 08 9485 1254 / Mobile: 0417 944 616
Phone: 08 9481 8181 / Mobile: 0409
929 121
Email: whazeldine@purplecom.com.au
Email: bmcquitty@warwickresources.com.au
Website: www.warwickresources.com.au
Figure
1: Location of Warwick
Resources' iron ore projects near Jimblebar
Figure
2: Modelled resource shells superimposed on topography, highlighting
exploration targets
Figure
3: Jimblebar Range
Cross-Section A'-A'', showing large zone of >60% Fe grade at depth
About Warwick Resources Limited
Warwick Resources (ASX:WRK) is an
emerging iron ore explorer with a diverse asset portfolio near Newman in the
Pilbara region of Western Australia
which is host to world class iron ore mines. The Company's projects have a
combined area of 1,700km?. Since listing on ASX in February 2007, the Company
has rapidly identified significant iron ore targets on its existing tenure and
has recently acquired further iron ore prospective ground. Through its
relationship with Peak Drilling, the company has access to drill rigs to
aggressively explore its projects. In April 2008, the Company welcomed Atlas
Iron Ltd (ASX:AGO) as a cornerstone investor with a 19.9% stake and is looking
forward to working with Atlas to deliver a significant iron ore resource in
the region for the benefit of the shareholders in both companies.
Warwick's
iron ore projects near Newman are:
Jimblebar
Range contains
an Inferred Mineral Resource of 11.7Mt @ 57.6% Fe, with low levels of
impurities (2.2% Al2O3, 0.06% P). The deposit consists of
two zones of haematite-goethite mineralisation which extend from near surface
to over 70m depth. The deposit is located only 8km from BHP Billiton's large
Jimblebar iron ore mine and railway.
Caramulla South comprises
an
east-west striking strip of Marra Mamba Formation, up to 180m wide and 4km
long, near the northern margin of the exploration licence. Drilling to date has
returned significant intersections, including: 36m @ 57.73% Fe from 2m
depth, 22m @ 59.29% Fe from 4m depth, 21m @ 56.3% Fe from 15m
depth and 11m @ 59.2% Fe from 9m depth.
Woggaginna has
extensive areas of surficial iron enrichment, developed over banded iron
formation confirmed by detailed mapping and sampling. Grades up to 63.0%
Fe and low contaminants indicate DSO potential.
Jimblebar CID - a 3km long mesa from
75m to 150m wide capped by pisolitic iron mineralisation. An initial drill
traverse completed across the CID demonstrated that the channel contains up to
7m of iron-rich pisolite grading to 57% Fe.
Phosphorous levels are very low, ranging from 0.020% to 0.025%.
Ten Mile CID is a recently
identified channel iron target over 3km in length and up to 400m wide, with
potential for further mineralisation beneath shallow cover. Initial rock chip
sampling returned grades up to 58.5% Fe.
Grassroots Iron Targets - Areas of
surficial iron enrichment, developed over banded iron formation, have been
mapped at Black Hills. Multiple targets for
channel iron mineralisation have been identified on the Company's tenements.
1 Mr Chris De-Vitry is a member and
registered practicing geologist of the Australian Institute of Geoscientists
(AIG). Mr De-Vitry has sufficient experience in the estimation of iron ore
deposits to act as the competent person for this estimate as defined in the
2004 Edition of the "Australian Code for Reporting of Mineral Resources
and Ore Reserves". Mr De-Vitry consents to the inclusion in this report of
the Jimblebar Range
resource estimate.
2 Mr Bruce McQuitty is a member of
the Australian Institute of Geoscientists. Mr McQuitty is a full-time employee
of the Company and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity they
are undertaking to qualify as a Competent Person as defined in the 2004 Edition
of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr McQuitty consents to the inclusion in this
report of the matters based on his information in the form and context in which
it appears.
8 September 2008
Warwick
Resources
Level 4
50 Colin St
West Perth
WA 6005
Attention: Mr Bruce McQuitty
Dear Sir
JIMBLEBAR RANGE PROJECT
The mineral resource estimate of the Jimblebar
Range project as of the 1st
of September 2008 is presented in the attached table (Table 1). Also provided
in attachments to this letter is a summary of key technical points about the
estimate prepared.
This estimate was prepared by Mr Chris
De-Vitry who is a member and registered practicing geologist of the Australian
Institute of Geoscientists (AIG). Mr De-Vitry is a full time employee of
Quantitative Group (QG) and
has sufficient experience in iron ore to act as the competent person for this
estimate as defined in the 2004 Edition of the "Australian Code for
Reporting of Mineral Resources and Ore Reserves". Mr De-Vitry consents to
the inclusion in this report of the Jimblebar
Range resource estimate.
Yours sincerely,
Chris De-Vitry
Principal Consultant
Quantitative Group
|
Tonnes
|
Fe%
|
SiO2%
|
Al2O3%
|
P%
|
S%
|
LOI%
|
CaFe%
|
|
11,700,000
|
57.6
|
7.0
|
2.2
|
0.06
|
0.04
|
7.7
|
62.4
|
Table 1. Jimblebar
Range Inferred resource
estimate at a 50% Fe lower cut off.
?
A 50% Fe grade envelope was used to model the mineralisation. The
validity of this grade envelope was confirmed by QG using a variety of measures
including using statistical analysis and by critically examining the geological
interpretation.
?
The 50% grade envelope was extrapolated up to 50m on cross section and
up to 150m along strike beyond the nearest hole.
?
Detailed mapping and a digital terrain model with quoted accuracy of 1m
were also used to constrain the mineralisation model.
?
A specific gravity (SG) of 2.47 was used to estimate the tonnage - this
figure represents the average dry SG of 8 samples of HQ core obtained from a
recently completed diamond drill hole (WRKDD04) within the mineralisation.
?
Within the 50% Fe grade envelope, univariate analysis, multivariate
analysis and experimental variography were performed. The tonnes and grades are
reported above a 50% cut off.
?
Estimation was via ordinary kriging and the kriging search employed (or
'neighbourhood') was optimised using Quantitative Kriging Neighbourhood
Analysis. Visual examination of the kriging weights and search neighbourhood
for selected blocks was also performed in 3D and indicated that the kriging
performed as expected.
?
The estimate was validated by QG in the following ways:
o A visual
comparison of drillhole assays (Fe, P, SiO2, Al2O3, LOI and S) to blocks was
made on every cross-section.
o Block model
volumes were cross-checked against wireframe volumes.
o Kriged
grades for every variable were compared to clustered and declustered
composites.
o The degree
of smoothing of the kriged estimate was assessed via global grade tonnage
curves using the Discrete Gaussian Change of Support.
o The reported
tonnes and grades of the kriged model were calculated using two software
packages to insure that no errors occurred.
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