Perth, Aug 14, 2009 AEST (ABN Newswire) - Perth-based exploration company Emergent Resources Limited (ASX:EMG) (Emergent) is pleased to announce that it has commenced its third-phase drilling program at the company's flagship Beyondie Iron Project in the mid-west region of Western Australia.
The program will drill 35 reverse circulation (RC) holes and 5 diamond core holes (for engineering and metallurgical work) for a total of 5,000 metres over a 14 km segment of the known 52km total strike length at Beyondie, and is designed to upgrade the recently announced Target Mineralisation at the project to in excess of 1 billion tonnes and increase the size and category of the existing JORC Resource.
Resource established to date
Emergent announced to ASX on 14 July 2009, a maiden JORC Resource of 127 million tonnes grading 28.15% Fe (cut-off grade; 21% Fe), and an additional 500-600 million tonnes Target Mineralisation at 25-30% Fe at the Beyondie Project.
Details of the resource estimate can be found in the following table:
----------------------------------------------------------------------Fe% Tonnes Fe Fe2O3% SiO2 Al2O3 TiO2% P ppm S LOIGrade Range ----------------------------------------------------------------------Total INFERRED 127,000,000 28.15 40.25 49.42 3.96 0.16 1164 0.02 2.63----------------------------------------------------------------------
The Resource and Target Mineralisation were calculated from results from the Company's two drill programs to date (a total of 5,651m across 46 holes), which focused on an 11 kilometre segment in the Western portion of the project area.
The target mineralisation tonnage and grade is conceptual in nature in that there has been insufficient exploration at this stage to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a mineral resource.
Given that only a small portion of the current total known strike length of 52 kilometres at the project has been targeted for drilling, Emergent expects that the Beyondie project area will host a large volume of magnetite mineralisation.
The Company expects that the 3rd phase drill program will be completed in 4 weeks, and will announce the results as soon as they become available.
Gindalbie Senior Geologist appointed to manage field work at project
The Company is also pleased to announce the appointment of former Gindalbie Metals senior geologist Dan Podger to the position of Technical Services Geologist at the Beyondie Magnetite Iron Project.
Mr Podger is an expert in the field of magnetite iron ore, and in his three years at Gindalbie he was instrumental in the technical evaluation and development of the Karara Magnetite Project. He oversaw the establishment of a 1.85 billion tonne JORC Resource, producing a concentrate grade of 68.3% at the Karara Project, and also the maiden magnetite reserve, of 522Mt of 36.3% Fe, at the project.
He has a strong depth of expertise in the resources sector, and his career experience also includes roles with Fortescue Metals Group, where he was responsible for exploration and resource drilling campaigns at the Christmas Creek and Cloudbreak Projects, Woodside, Shell Australia and BP Exploration.
More recently Mr Polger was Chief Executive of junior magnetite explorer Accent Resources, where he was responsible for managing the Magnetite Range Magnetite Project prefeasibility study, in WA's mid-west region.
Commenting on the appointment of Mr Podger, Emergent Resources Managing Director Garry Hemming said: "We are delighted to have someone of the cailbre and expertise in magnetite iron ore projects as Dan join our team. He is one of the pre-eminent technical experts in magnetite exploration and development and his work with Gindalbie's Karara Magnetite Project is testament to his abilities."
"His appointment is consistent with our aim to build a high quality team to support the development of the Beyondie Iron Project into a world class magnetite mining operation," Mr Hemming said.
About the Beyondie Iron Project
The Beyondie Project is located in the northern part of the mid-west iron ore precinct in WA, immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline.
The Company recently confirmed a maiden JORC Resource and entered into an non-binding MOU with China Metallurgical Investment Co Ltd (CMI) for the development of the Beyondie Project which includes a 50:50 Development JV and A$200m funding at the project, as well as a A$4.9m placement to CMI.
The Company completed the first tranche of a placement on 14 July 2009 amounting to 4,215,000 shares and 2,107,500 listed options to sophisticated and professional investors to raise A$1.686m. The second tranche of the placement, comprising an additional 1,900,000 shares and 950,000 listed options to raise up to a further A$760,000, is subject to Shareholder approval at a General Meeting to be held on 27 August 2009.
The Company plans to develop the project in to a robust, long term, high grade magnetite mining operation. Emergent has earned a 60% interest and has commenced the expenditure necessary to exercise its right to earn up to 80% interest in the project in joint venture with De Grey Mining Limited.
Contact
Garry Hemming
Managing Director
Emergent Resources
Mob: 0419 835 757
E: ghem@westnet.com.au
Website: www.emergentresources.com.au
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