Strong drilling results point to substantial resource upgrade for Roper River Iron Ore Project

Transcription

1 29 June 2011 Strong drilling results point to substantial resource upgrade for Roper River Iron Ore Project Initial drilling at Sherwin Creek (within EL24101) at Roper River Iron Ore Project returns strong intersections Results confir iddle and lower heatite beds run at shallow depths for over 5ks along strike and 1k wide with the ineralisation reaining open pending further results Initial drill results fro Sherwin Creek include 1 : o RR00043: 58.0%Fe fro 19 o RR00047: 54.2%Fe fro surface o RR00042: 53.4%Fe fro 31 o RR00038: 51.5%Fe fro 30 o RR00046: 49.4%Fe fro holes representing over 9,200 etres of RC drilling copleted since progra started on 20 April 2011 Diaond drilling to support additional resource estiation has also coenced Sherwin Iron Liited ( ASX:SHD) is pleased to report strong results fro the first round of drilling at the Sherwin Creek deposit at its Roper River Iron Ore Project in the Northern Territory. The results are expected to help underpin a substantial resource upgrade at Roper River and further strengthen the Project s econoic outlook and strong developent prospects. The Mineral Resource at Roper River currently stands at 107Mt at 47% Fe. The 2011 exploration progra coenced with RC drilling on EL24101, which hosts Sherwin Creek, in the second half of April. To date, 290 holes for ore than 9,200 (average hole depth of 32 etres) have been drilled. Assay results have been received fro the first 48 RC holes drilled at Sherwin Creek, with 24 holes returning significant intersections. The significant intersections (those above 45% Fe) are contained within two beds of heatite within the highly prospective Sherwin Foration in the northern part of EL The heatite beds lie above the base of oxidation over at least a 5k strike length and 1k width and dip shallowly to the west. The ineralisation reains open along strike and down dip where additional drill results are pending. 1 All above intersections reported at 40%Fe lower cut off grade and interpreted to represent true widths of ineralisation; drill locations tabled and shown on attached plan; all holes drilled vertically.

2 Figure 1 Sherwin Creek drill hole location and significant intersections At Sherwin Creek, the Middle Bed is typically 3 to 6 thick grading 38-44% Fe within 10 of surface. The Lower Bed is higher in grade with typically 3 to 8 thick intersections grading between 42-56% Fe, 10 to 40 fro surface. Most drill holes intersected both horizons. Figure 2 Sherwin Creek drill line cross section Page 2

3 The grades exceed predictions fro historic data and the very low phosphorous and aluina levels ake the Sherwin Creek heatite a strong candidate for the beneficiation process that has been deonstrated for the Hodgson Downs Mineral Resource. A diaond drilling progra to support the resource developent and provide etallurgical test saples fro Sherwin Creek has coenced. Sherwin Iron Managing Director Greg Bittar said the latest results showed Roper River was set for a significant resource upgrade. Based only on the drilled portions to date, we expect Sherwin Creek to generate up to 50-60Mt at 35% - 40% Fe for the Middle Bed (34% lower cut) and 50-75Mt at 45% - 50% Fe (40% lower cut) for the Lower Bed, contributing to an Exploration Target 2 of Mt at 40 48% for EL These results should enable us to eet our target of 300Mt of total project resource fro this year s drilling progra, with potential for further substantial resource upgrades during 2012." A suary of results fro each of the Lower and Middle Beds at Sherwin Creek are shown in Appendix 1 and 2. Different lower cut off grades have been applied based on depth of occurrence. The exploration progra for the oolitic Hodgson Downs type-ore continues with RC drilling at Mt Fisher intersecting significant zones of oolitic heatite of siilar grade and thickness to Hodgson Downs. This drilling, at 400x200 spacing, is continuing to enable an initial resource estiate for Mt Fisher. Drilling is also being undertaken at Hodgson Downs north-east (BHP Deposits T, U and Y) testing extensions of the high grade oolitic iron horizon that characterises Sherwin Iron s current Hodgson Downs Resource. Intersections fro this drilling will be incorporated into an updated resource estiate for Hodgson Downs. Figure 3 Roper River Iron Ore Project Page 3

4 Investors/Shareholders: Greg Bittar Managing Director Tel: +61 (0) Media: Paul Arstrong Read Corporate Tel: +61 (0) About Sherwin Iron Liited (ASX: SHD) Sherwin Iron is an eerging iron ore copany which owns 100% of the 4,000k 2 Roper River Iron Ore Project in the Northern Territory. Sherwin Iron has a current resource of 107Mt fro its initial exploration activities with an Exploration Target 2 of 40-48% Fe fro two of its five teneent areas (EL24101 and EL24102). A Scoping Study on production exporting via the Gulf of Carpentaria has been finalised and work supporting feasibility assessent is being progressed. 2 The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the deterination of a Mineral Resource. Copetent Persons Stateent The inforation in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on inforation copiled by Mr Tony Ryall who is a eber of the Australian Institute of Mining and Metallurgy. Mr Ryall is a full tie eployee of the Copany and has sufficient experience which is relevant to the style of ineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Copetent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ryall consents to the inclusion in the report of the atters based on his inforation in the for and context in which it appears. Page 4

5 Appendix 1 Sherwin Creek Intersections Lower Bed (40% Fe Lower cut off grade) Prospect Hole_ID BHP Northing Easting Interval Fro To Fe % SiO 2 % Al 2 O 3 % P% SCC_01 RR00025 B RR00026 B RR00027 B RR00028 B RR00029 B RR00030 B RR00031 B RR00032 B RR00033 B RR00034 B RR00034 B SCC_02 RR00038 C RR00039 C RR00040 C RR00041 C RR00042 C RR00043 C RR00044 C RR00045 C RR00046 C RR00047 C RR00048 C RR00048 C RR00049 C All holes drilled vertical (ie 90 degree dip); downhole interval approxiates true thickness. All assays are fro single etre sapling. Page 5

6 Appendix 2 Sherwin Creek Intersections Middle Bed (34% Fe Lower cut off grade) Prospect Hole_ID BHP Northing Easting Interval Fro To Fe % SiO 2 % Al 2 O 3 % P% SCC_01 RR00017 B RR00018 B RR00020 B RR00021 B RR00022 B RR00023 B RR00024 B RR00025 B RR00026 B RR00027 B RR00027 B RR00028 B RR00029 B RR00031 B RR00034 B RR00037 B SCC_02 RR00038 C RR00039 C RR00042 C RR00044 C RR00045 C RR00046 C RR00049 C RR00050 C RR00051 C All holes drilled vertical (ie 90 degree dip); downhole interval approxiates true thickness. All assays are fro single etre sapling. Page 6