Adelaide, Sept 28, 2006 (ABN Newswire) - Grades of around 60% iron - a benchmark for iron ore mining - have been confirmed in the first round of drilling results by Centrex Metals Limited (ASX: CXM) on its projects in Eyre Peninsula in South Australia.
Significant intercepts included;
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Hole P06RC004 22m @ 61.6% Fe (iron) from 30-52 metres downhole
Hole WP06RC006 46m @ 57.5% Fe from 86-132 metres downhole
including 20m @ 60.1% Fe f12m @ 56.8% Fe from 120 metres downhole
Hole WP06RC007 10m @ 57.5% Fe from 36 metres down hole
and 16m @ 60.1% Fe from 48 metres down hole, and
Hole WP06RC008 8m @ 60.6% Fe from 52-60 metres.
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The results are the first by Centrex since it listed on the ASX in July this year and follow an initial program of 22 reverse circulation holes totaling 1,940 metres on the northern pod of the Company's Wilgerup hematite deposit near Lock.
The drilling program was designed to test a small part of known iron ore occurrences within the tenement and first discovered by WMC in the 1990s. The mineralization lies under about 20 metres of sand cover and was assessed by the CSIRO as having an Inferred hematite resource of 7.9 million tonnes grading 59.8% Fe. Phosphorous levels were between 0.51% and 1.27%.
Centrex's Managing Director, Mr Gerard Anderson, said the results were encouraging, particularly as the hematite had been intersected from immediately below the shallow sand cover to as deep as 132 metres.
"We will now collect samples for mineralogical characterization and possible bench scale beneficiation test work," Mr Anderson said.
"There are at least 30 targets within the project area and we will continue a 14,000m drilling program until December, to further prove up the resource."
