Perth, May 13, 2009 AEST (ABN Newswire) - Emergent Resources Limited (ASX:EMG) is pleased to provide the following update on the latest drill program at its Beyondie Iron Project and continuing discussions with Chinese parties for participation in the magnetite project, as well as exploration work at the Company’s highly prospective base metals projects.
Phase II drill program at Beyondie Iron Project completed
The Company is pleased to advise that it has completed its 2nd Phase drill program at the Beyondie Project. Assay results are expected to be available by mid-June.
The drill program comprised 25 reverse circulation (RC) holes for a total of 3,441 metres over a 7km segment of the known 45km total strike length at Beyondie. Three of the 21 holes from the 1st program were extended for an additional total of 145 metres. This takes the total drilling completed at the project to date to 5,650 metres from 46 holes.
The Company is delighted with the width of the magnetite intersections achieved in the latest drill program, which have significantly exceeded expectations and further adds to the world class potential of the project.
The previous drill program intersected three large magnetite bodies that returned magnetite intersections of at least 90 metres true thickness. The extraordinary widths and moderate dip (approximately 30*-40* to the north-west) is optimal for a low-strip ratio open cut mine, and the grades from the first drill program compare more than favorably with similar magnetite operations in WA.
Discussions with potential Chinese investment partners continuing
The Company has received interest from a number of Chinese groups regarding participation in the Beyondie Iron Project. Last month it commenced discussions in China with several interested parties to discuss development parameters for future off-take arrangements and investment partnerships for the development of the project.
Managing Director, Garry Hemming met with a number of steel smelters and end-user groups and the outcome of initial discussions was positive. As a result, Mr Hemming will return to China later this month to enter into the next stage of discussions, and will also take the opportunity to meet with other potential future off-take and investment partners who have since also expressed their interest in Beyondie.
The Company will update the market on a timely basis with details of the progress of these discussions.
About the Beyondie Iron Project
The Beyondie Iron Project is located in the northern part of WA’s mid-west iron ore precinct, immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline.
The Company plans to develop the project into a robust, long term, high grade magnetite mining operation and has the right to earn up to an 80% interest in the project by way of a joint venture with De Grey Mining Limited.
The Company has completed an internal business plan incorporating financial and logistic parameters for the development of the project, and work is continuing on geological modeling of the magnetite horizons, metallurgy, process and engineering aspects, transport options, as well as approvals on environment, government, and community issues.
Emergent expects that the project will benefit directly from the recent WA Government-OPR mid-west infrastructure agreement which will provide certainty for Beyondie's future mine-to-port infrastructure requirements.
Exploration update at Base Metals Projects
Emergent is quickly establishing new targets and opportunities in its primary Base Metal Project at Glengarry, near Wiluna. They result from a three-pronged approach that includes:
1. A collaborative lithostructural study between Emergent and Resource Potentials Pty Ltd, a consulting geophysical firm, using the company's recently acquired detailed magnetic data.
2. A collaborative mineral mapping and alteration study between Emergent and the Mineral and Environmental Sensing Group at the CSIRO, utilising the company's HyMap data.
3. Compilation of the public-domain legacy data, part of which will be merged with the surface MMI (Mobile Metal Ion) sampling completed by Emergent in support of 1 and 2. Interrogation of the surface geochemistry data will occur after batch and regolith domain leveling within a controlled regolith-landform and geological frameworks established in 1 and 2.
Lithostructural Study
Processing and imaging of compiled public-domain datasets is complete. The merging of these with higher resolution aeromagnetic surveys is complete for two of the six study areas. Targeting on the two completed study areas has focused on extensions to known mineralised trends/structures and potential new target areas.
Alteration Study
HyMap data for Glengarry has been separated into mineral abundance and compositional information representing ferric iron, ferrous iron, mica, smectite, kaolinite, carbonate and Mg OH minerals (e.g. chlorite). The team is presently checking for mineral products that may cross cut published geological boundaries as an indicator of possible alteration overprinting and regolith processes. The study remains in its infancy, but on target for a June 2009 completion.
Legacy Data Compilation
MMI geochemistry for the Glengarry Project was batch and regolith domain leveled. Geochemical leveling is a statistical manipulation of data that minimizes the differences between the different batches of samples and which can unmask the subtle expressions of mineralisation that are commonly obscured by such interbatch analytical variation and also variations in the natural backgrounds between different surface geology units.
The leveling techniques are based on the concept that each unique batch contains both anomalous samples and a background population. The aim is to establish a consistency on the thresholds that separate anomalies and backgrounds for each batch. Leveling improves Emergent’s ability to resolve real from false anomalies and significantly constrains anomalies to provide drill ready targets, without the need for expensive pattern drilling.
Targets for zinc, lead, gold, uranium and manganese are apparent in addition to the high priority targets at North Pool and Mt Bartle.
ENDS
Contact
Garry Hemming
Managing Director
Emergent Resources
Mob: +61-419-835-757
Email: ghem@westnet.com.au
www.emergentresources.com.au
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