Equatorial Resources Limited (ASX:EQX) To Expand Drilling Program At Mayoko-Moussondji Iron Project

Equatorial Resources Limited (ASX:EQX) is pleased to advise that it has signed a drilling contract with Wallis Drilling Pty Ltd ("Wallis Drilling") for a minimum of 28,000m of reverse circulation ("RC") and diamond core drilling at the Company's 100%-owned Mayoko-Moussondji Iron Project ("Mayoko-Moussondji") in the Republic of Congo ("ROC"). The contract with Wallis Drilling will run in parallel to the existing drilling program already underway with Partners Drilling International ("Partners Drilling") and is intended to rapidly advance the company's exploration activities.

Wallis Drilling is an internationally experienced drilling contractor with 19 years of experience in Africa, Asia, North and South America and 44 years of experience in Australia. Over the last three years Wallis Drilling have completed a total of 3,589,000 meters of reverse circulation ("RC") drilling and 180,000 meters of diamond core drilling. Privately owned with a head office in Perth, Western Australia, Wallis Drilling offer a wide range of mine-based and remote exploration services to an international client base.

Wallis Drilling have extensive relevant experience and qualified personnel having previously successfully completed major drilling contracts exploring for iron ore in Africa for Sundance Resources Limited (ASX:SDL) (PINK:SUDCF) and Aquila Resources Limited (ASX:AQA) (PINK:AQARF). Wallis Drilling has the technical and financial capacity to deliver the highest level of service and significantly expand and accelerate Equatorial's exploration activity at Mayoko- Moussondji.

Mr John Welborn, Managing Director and CEO, said "We are delighted to announce we have secured Wallis Drilling to provide drilling services to Equatorial. The Wallis Drilling contract will significantly boost the equipment and expertise we have available at Mayoko-Moussondji and accelerate the identification of "hematite cap" mineralisation with the potential to host direct shipping ore ("DSO"). The drilling campaign will continue to expand as we aggressively explore and define the 46km of strike that makes up our massive exploration target."

The Wallis Drilling program will commence with two rigs, a KL900 truck mounted multi-purpose RC & diamond core drill rig and a Wallis/Alton diamond drill rig mounted to a steel tracked carrier. Both rigs are currently being mobilised from Walvis Bay, Namibia and are scheduled to arrive in ROC in early June 2011. The contract specifies a minimum of 28,000 meters of drilling in phase 1, with approximately 8,000 meters of diamond core drilling and 20,000 meters of RC drilling. Equatorial has the option to continue with a phase 2 drilling program with Wallis Drilling for a further 40,000 meters, with approximately 10,000 meters of diamond core drilling and 30,000 meters of RC drilling.

Drilling at Mayoko-Moussondji is initially being focused on the Makengui Prospect ("Makengui"), which is 12km long, up to 2km wide and lies 500m from an existing, operational bulk haulage railway line (refer image below). Makengui is one of five main prospects at Mayoko-Moussondji which total more than 46km of strike identified from the airborne geophysics program conducted in late 2010.

As previously announced (refer ASX announcement 31 March 2011) drilling has already commenced at Makengui with a multi-purpose rig supplied by Partners Drilling. This rig has experienced mechanical problems and is currently under repair on site. It is expected the Partners Drilling rig will be operational shortly and will continue drilling at Makengui in parallel with the Wallis Drilling program.

Equatorial has commenced planning for the construction of a state-of-the-art sample preparation laboratory on site at Mayoko-Moussondji. This facility will be managed by an independent accredited world class laboratory and will significantly reduce assay turnaround times and negate the need to export whole samples for off site preparation and assay. Ongoing results from the drilling programs will be released when received and are expected to commence during the third quarter of this year.

About Equatorial Resources Limited

Equatorial Resources Limited (ASX:EQX), is focused on the exploration and development of two 100% owned potentially large-scale iron ore projects located in the politically stable and investment friendly Republic of Congo ('ROC') in the emerging global iron ore province of Central West Africa.

The Mayoko-Moussondji Iron Project, located in the southwest region of the ROC, currently has a Hematite Resource of 102 million tonnes at 40.6% Fe as part of initial total Indicated and Inferred Resources of 767 million tonnes at 31.9% Fe. Overall the project has an estimated global exploration target of between 2.3 and 3.9 billion tonnes of iron mineralisation at a grade of 30% to 65% Fe. The project has access to a rail line running directly to the deep-water port of Pointe-Noire, where the Company's administrative office is located.

The Badondo Iron Project, in the northwest region of ROC, has an estimated global exploration target of between 1.3 and 2.2 billion tonnes of iron mineralisation at a grade of 30% to 65% Fe. The project is located within a regional cluster of world-class iron ore exploration projects including Sundance Resources' Mbalam and Nabeba projects.

 

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