Padbury Mining Limited (ASX:PDY) High Grade RC Results At Peak Hill Iron Ore JV Project

Perth, Sep 22, 2009 AEST (ABN Newswire) - Padbury Mining Limited (ASX:PDY) announce five main target areas were drilled across the 70 km prospective strike length of two different Banded Iron Formations (BIF), namely, Telecom Hill (Padbury Formation BIF), Peak Hill, Mt Beazley, Horseshoe and Fortnum (Horseshoe Formation BIF). Results have indicated significant thicknesses of Direct Shipping Ore (DSO) grade material at Telecom Hill. Drilling has confirmed high grade nature of mineralisation as suggested by the previous round of rock chip samples.

Telecom Hill was included in the company's programme of works due to the prominent outcropping iron enriched BIF grading up to 66% Fe with low phosphorous and alumina. The indigenous owners are supplying a local language name for Telecom Hill.

Further enriched hematite material has been identified in the Mt Padbury area and the area has been cleared for heritage and will be drilled with the forthcoming planned program at Peak Hill.

Primary Beneficiation Feed Ore (BFO):

Potentially BFO material grading in the high forties (>45%) Fe content was also intersected over substantial intervals. Furthermore additional magnetite material has also been identified just east of Fortnum and will be tested in the near future as well as additional mapping and rock chip sampling over the Horseshoe Formation.

The BFO material may be upgraded by means of magnetic separation or heavy media separation (HMS) plant similar to that which is used at Tom Price and Mt Whaleback mines in the Pilbara. The latter produces direct shipping grade lump and fines materials. Samples have been submitted to the laboratory for metallurgical testwork to determine the amenability to conventional methods of processing.

Mineralisation assemblage comprises of Martite (oxidised magnetite in a hematite form), magnetite and goethite. In effect this will mean that the protore (mineralisation prior to being enriched) is likely to be high grade magnetite.

Future Activity:

Based upon the highly encouraging results received from this round of drilling, the joint venture partners will initiate the scheduled drilling campaign to test further targets and extensions to identified mineralisation.

For the complete Padbury Mining ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/61471-ASX-PDY-460868.pdf

Contact

Luke Innes Chairman Tel: +61-8-9361-5400 Padbury Mining Limited