Magnetic Resources NL (ASX:MAU) Jubuk Drilling Extends Strike Length 100% To 4km

Perth, Feb 28, 2011 AEST (ABN Newswire) - Following the previously reported encouraging drilling and test work results from its 100%- owned Jubuk project near Corrigin, Magnetic Resources NL (ASX:MAU) has commenced a two-stage 34-hole reverse circulation (RC) drilling programme totalling approximately 4,000m. The drilling programme is aimed at defining an Inferred Resource and testing of strike extensions of the prospective coarse-grained magnetite banded iron formation (BIF).

Magnetic has completed the first stage of this drilling programme comprising 22 holes totalling 2,150m. The drilling has successfully extended the coarse grained BIF horizons approximately 2.1km to the east of the previous drilling, increasing the known strike length of the mineralisation to more than 4km. Better intersections include 21m @ 30.8%Fe from 72m in hole JRC049 and 12m @ 29.5%Fe from 76m in hole JRC035.

Geological interpretation indicates that the magnetite BIF is both faulted and folded, with further interpretation of the structure and continuity of the BIF in progress. In addition, Davis Tube recovery (DTR) tests are being carried out on composite samples from the recent drilling as part of the metallurgical testing of this extension. As previously reported, DTR tests on drill samples has indicated that Jubuk magnetite can probably be upgraded to a premium grade product using a coarse grind and magnetic separation. Given the success to date in extending the strike length of the mineralisation by drilling, the company is planning a 50 line-kilometre gravity survey to assist in drill targeting and to define the extent and continuity of the BIF horizon around a 7km-long regional dome structure on which the Jubuk deposit is interpreted to be situated.

Following ASX advice that scoping studies on the potential economics of mining projects should include JORC-compliant resources, completion of the Jubuk scoping study has been deferred pending results of further drilling and a resource estimate. The second stage of the proposed drilling is anticipated to commence in early March focussing on the central zone of the BIF to facilitate preliminary definition of resources in the project area.

For the complete Magnetic Resources announcement including map and drilling result table, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/66237-ASX-MAU-531087.pdf

Contact

George Sakalidis Managing Director Tel: +61-8-9226-1777 Mob: +61-411-640-337 Email: george@magres.com.au Roger Thomson Technical Director Tel: +61-8-9226-1777 Mob: +61-419-969-183 Email: roger@magres.com.au