On 15 December the Company announced the maiden JORC resource for the main range discovery at theCompany’s 100% owned McPhee Creek iron ore prospect, located 220 kilometres south-east of Port Hedland, and around 50 kilometres north of BC Iron Limited/ FMG's Nullagine-Bonnie Creek channel iron deposits ("CID") in the Pilbara region of Western Australia.
The maiden Inferred Mineral Resource is based on 71 RC holes completed to date, since discovery in September 2009:
Overall Resource 52.1 million tonnes @ 56.0%Fe (61.7% CaFe),at 50% Fe cut-off
Includes 33.8 million tonnes @ 57.3%Fe (62.9% CaFe),at 55% Fe cut-off
Iron ore mineralisation on the main range at McPhee Creek appears to be a shallow dipping hematite rich zone within an Archaean aged banded iron formation sequence. The main range is approximately 8 kilometres long, and up to 1 kilometre wide. Hematite mineralisation is up to 90 metres thick, and starts from surface in many holes.
Surface mapping indicates that mineralisation extends further east than the area currently drilled, and extends south into a synclinal keel where recent rock sampling has returned high iron grades. As the eastern most hole on most sections drilled is mineralised, this suggests that relatively flat lying mineralisation could extend considerably further than currently modelled in the Company’s conservative initial Exploration Target# of 100 to 140 million tonnes of hematite iron ore (57-60%Fe) for the main range deposit.
Note: The Mineral Resource was estimated within constraining wireframe solids based on a nominal lower cut-off grade of 50% Fe. The resource is quoted from blocks above the specified cut-off grade % Fe. Calcined Iron grade (CaFe) is a measure of iron content upon removal of volatiles (i.e. LOI).Differences may occur due to rounding.
# The term "Exploration Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context.Exploration targets are conceptual in nature, and it is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Ore Reserve.
Internationally recognised geological consultants CSA Global Pty Ltd (CSA) were commissioned by Giralia to complete the maiden resource estimate for the McPhee Creek main range deposit.Methodology, procedure and parameters used for the Mineral Resource estimate are detailed in the CSA summary report (Annexure 1). Delineation of this updated Mineral Resource is based on 71 reverse circulation ("RC") drill holes completed to date at McPhee Creek main range by Giralia in September to November 2009, which returned intersections including;90 metres @ 58.6% Fe from surface to end of hole, 50 metres @ 60.3%Fe,46 metres @ 60.2% Fe,56 metres @ 59.0%Fe, and80 metres @ 56.1%Fe.
The Company has initiated a study into development options at McPhee Creek, focused on road haulage to Port Hedland.
Fig 1:McPhee Creek main range Cross Section
McPhee Creek main range drilling results September-November 2009
RC drill samples collected as 2m riffle split composites. Intersections quoted using lower cut-offs of 50% Fe. All coordinates in MGA Zone 51 GDA 94, by hand held GPS (± 5m). XRF analyses by Spectolab Laboratory Geraldton. QA/QC included typically field duplicate samples and two standards (Certified Reference Material), comprising one coarse standard and one pulverised standard for each drill hole. CaFe is a measure of iron content upon removal of volatiles (i.e. LOI).*Holes marked previously reported 30 Sept 09.# Holes marked previously reported 13 Oct ‘09.
An earlier 43 hole drill program in mid 2008 at McPhee Creek tested a channel iron deposit mesa just to the east of the main range (Crescent Moon CID mesa) defining an initial JORC resource of 5.17 million tonnes @ 53.6 % Fe (60.4% CaFe). Drill intersections from surface included 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe, 14 metres @ 55.9% Fe.The new drilling results from the main range are considered likely to result in a substantial increase in project resources.
Fig 2:McPhee Creek iron ore deposits, drill hole plan
