Beebyn Project (iron ore) - Giralia 100%
Giralia’s 100% owned Beebyn iron ore project in Western Australia’s emerging Mid West iron ore province comprises two zones of identified hematite iron ore mineralisation; a 6 kilometre long segment of the north-eastern Weld Range, immediately along strike from the Midwest Corporation Ltd and Sinosteel Corporation Joint Venture, and the Beebynganna Hills prospect, an 11 kilometre long iron formation range only 10 kilometres to the south of the Weld Range, where mapping and surface sampling by Giralia has outlined at least seven zones of unexplored high grade (>60% Fe) hematite mineralisation, including two zones with grades in excess of 65% Fe.
Weld Range segment
On 13 December 2007 the Company announced an initial JORC compliant hematite iron ore Resource of 7.2 million tonnes @ 57.2 % Fe for its 100% owned Beebyn–Weld Range prospect. Importantly, rail infrastructure is proposed right to Giralia’s “doorstep”. Completing a preliminary resource estimate was a priority for the Company to ensure involvement in discussions on regional infrastructure and development.
Giralia’s initial resource estimate covers only the western 3 kilometres of the Company’s 100% owned 6 kilometre long segment of the Weld Range, with delineation of the initial resource based on a total of 44 reverse circulation (“RC”) drill holes completed to date by Giralia.
An initial phase of RC holes completed in June 2007 was followed up with a further phases of reverse circulation (“RC”) drilling in August and October 2007 and August 2008. Significant intersection are shown below:
Based on the completed drilling, the target hematite rich iron formations are interpreted as steeply west to vertically dipping. Drilling has shown that the thickness of the main hematite zone averages between 25 and 45 metres. A parallel hematite bearing iron formation 30 metres south of the main zone is up to 10 metres wide.
Beebynganna Hills
In late 2008 initial RC drilling of 3 of the 7 mapped zone of hematite outcrop at the Beebynganna Hills prospect, located only 10 kilometres south of the Weld Range returned encouraging results, with several intersections of hematite mineralisation recorded, including 10 metres @ 57.7% Fe and 6 metres @ 61.8% Fe. Hematite mineralisation persists to considerable depth (in excess of 100 metres) along the western of two parallel iron formation units tested in the middle of the Beebynganna range. Additionally several holes into the eastern most iron formation intersected thick continuous zones of magnetite rich banded iron formation including hole RCBH042, which returned 108 metres @ 35.2% Fe from surface to end of hole.
A follow up 77 hole/ 6724 metre RC drilling program was completed in August 2009 at Beebynganna Hills and the Weld Range. The program returned the best intersections to date at Beebynganna Hills; 28 metres @ 59.1% Fe, and 28 metres @ 58.3%Fe, including 16 metres @ 61.1%Fe, and confirmed further resource extensions on the Weld Range; 18 metres @ 61.3%Fe.
Wide zones of magnetite rich material were also noted, particularly at Beebynganna Hills, and initial DTR testwork was completed during the quarter to establish magnetite beneficiation characteristics. A total of 26 DTR tests were completed on 8 metre downhole composites from 3 drill holes on one section at Beebynganna Hills. Results were positive, with the average grade of all DTR concentrates 67% Fe and 4.5% SiO2 at 17.5% weight recovery, while for samples below 50 metres downhole depth the average weight recovery was 20.8% with a maximum weight recovery of 37% in the deepest composite tested. The banded iron formation package is over 150 metres wide on the section tested, and much of the material tested was clearly partially oxidised. The Company considers that a substantial magnetite target exists at Beebynganna Hills beneath lenses of high grade hematite mineralisation.
