Perth, Jan 23, 2008 AEST (ABN Newswire) - The Directors of Polaris Metals NL (ASX: POL) are pleased to provide an update on the latest developments regarding the Company's pipeline of active projects in the Pilbara Iron Ore Province, Western Australia.
Polaris holds 1,962km2 of granted and ungranted mining tenements in the Pilbara. As part of its corporate strategy for the Pilbara, the Company is now concurrently working to bring its key Poondano Project (30km from Port Hedland) to production while also identifying key exploration targets at Weelumurra and Caliwinga Creek, in order to develop a sustainable pipeline of viable projects.
Weelumurra and Caliwinga Prospects
The Company wishes to inform the market that it has received an independent specialist interpretation of Landsat imagery suggesting large-scale Channel Iron Deposit (CID) target potential (200-250Mt) and additional Canga iron target potential (50-60Mt) at the Weelumurra and Caliwinga Prospects.
The two prospects are 170-185km south-east of Dampier and in close proximity to Fortescue Metals Group's Solomon East prospect (stated to have an inferred resource of 700Mt of iron ore at 56% Fe) and Serenity Prospect (stated to be a billion tonne deposit at 56% Fe).
The Landsat imagery interpretation follows the announcement by Polaris in November 2007 of the location of a CID at Caliwinga visually estimated to be up to 25m thick, with assays up to 58.8% Fe and low in silica, alumina and phosphorus, and the identification of canga and detrital iron deposits at Weelumurra with assays up to 64% Fe.
The interpretation and assessment of target potential was undertaken by Dr Richard Russell, who was engaged by Polaris following the highly encouraging helicopter reconnaissance and sampling results referred to in the November 2007 announcement, and in light of the proximity of the prospects to large inferred resources.
Dr Russell has carried out field assignments in the region over the last three years and is familiar with the geology and geomorphology of the area. Using a method of estimating the area likely to be occupied by CID and Canga in each of the Polaris tenements, possible thicknesses based on FMG's drilling results and the shape of similar valleys in the Polaris tenements, he calculated the potential ore volumes. Target tonnage potential for the areas was then assessed by multiplying the volume estimates by a range of specific gravities (SG) for the expected sub-surface materials, 2.6 providing a 'lower' estimate and 3.2 providing an 'upper' estimate.
Granting of the Caliwinga Creek and Weelumurra Creek tenements to Polaris is now being finalised. When granted, the Company, having established the potential of the areas for iron ore, will then obtain Ministerial approval to explore for iron ore, and commence a more thorough assessment of potential deposits in the tenements.
Poondano Project - Drilling and Pre-feasibility Study Progress
Pre-feasibility studies of Polaris' flagship Poondano Iron Ore project remain on track for completion in the second quarter of 2008. Engenium Pty Ltd has been appointed as consulting engineers with engineering assessment commencing and metallurgical testwork being planned. Mining commencement for mid 2009 is targeted.
Drilling in November and December 2007 totalled 6,970m with 7,263 samples being dispatched for assay. Drilling commenced at the eastern end of the Western CID sub crop, initially infilling the 2007 drill pattern. Results to date in that area are in line with those received from last year's drilling. The observation of 10-30% clay in the samples suggests shipping grades will be achievable by simple screening and washing. Greater thicknesses of channel iron mineralisation were visually recorded to the west and results are expected by February, 2008.
The long lead time items for mining approval such as flora and fauna surveys are planned to commence in February 2008. Depending on drill rig availability and cyclone activity, drilling is expected to recommence by March 2008. Drilling will involve completion of the program on the Western CID, infill drilling on Poondano East and the preliminary assessment of the Central Mesas. Initial resource estimates for the Eastern and Western mineralisation will be calculated in March 2008.
Significant assay results returned to date are:-----------------------------------------------------------Hole From To Thickness Fe(%) SiO2(%) Al2O3(%) P(%) LOI(%)-----------------------------------------------------------PDRC0100 0 4 4 51.1 9.81 4.87 0.02 10.3PDRC0109 0 3 3 53.1 8.49 3.58 0.02 11.6PDRC0110 0 3 3 54.7 7.44 3.02 0.02 10.9PDRC0113 0 4 4 51.4 9.71 5.70 0.02 10.4PDRC0118 0 2 2 52.4 10.6 3.73 0.02 10.6PDRC0119 0 2 2 51.7 10.1 4.25 0.02 11.2PDRC0133 0 2 2 51.7 11.2 2.83 0.01 11.6PDRC0140 1 3 2 51.7 10.5 2.81 0.01 11.7-----------------------------------------------------------All holes are vertical, and collar coordinate details are:------------------------------Hole N E Depth------------------------------PDRC0100 7737320 685960 18PDRC0109 7737560 686040 18PDRC0110 7737520 686040 18PDRC0113 7737360 686040 12PDRC0118 7737400 686120 12PDRC0119 7737440 686120 12PDRC0133 7737480 686280 9PDRC0140 7737480 686360 12------------------------------
Competent Person DeclarationThe information in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr J Lea, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The potential quantity and grade of iron deposits reported is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Contact
Tel: 08 94813030
Fax: 08 94813031
Email: info@polarismetals.com.au
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