ASX ANNOUNCEMENTS PLATFORM
12 May 2008
Midwest increases Weld
Range Mineral Resources Direct
Shipping Ore
(DSO) Project to 149 mt
Iron ore producer Midwest Corporation Limited (“Midwest”) (ASX:MIS) is
pleased to announce a 12% increase in the total estimated Mineral Resource
inventory at its flagship DSO project at Weld Range.
Midwest has increased total Measured, Indicated and Inferred Mineral
Resources by 15.8 million tonnes (mt) to 149.2 mt at an average grade of 58.4%
Fe, using a cut off grade of 50% Fe.
The increase in total estimated Mineral Resources results from ongoing
resource drilling programmes at the Weld Range DSO Project deposits leading up
to the Pre-Feasibility Study (PFS), which is scheduled for completion in
December 2008.
Importantly, infill drilling at Weld Range
has provided a substantial increase in the confidence level of the Mineral
Resource inventory, with 72% of the total estimate now reporting to the
Measured and Indicated Resource categories.
Midwest Chief Executive Officer, Mr Bryan
Oliver, said: “These results continue to support Midwest’s
high expectations for the Weld Range
and confirm the basis for our proposed expansion of hematite iron ore sales
through the joint development of the Weld Range
DSO Project in conjunction with Sinosteel Corporation.”
“We remain on course to achieve our minimum target of 225 mt (details
of which are set out in the Midwest Target’s Statement dated 29 April 2008) to
underpin the development of Weld Range
and the associated rail and port infrastructure,” he said.
The increase in the total Measured, Indicated and Inferred Mineral
Resources relates to mineralised lenses at the Madoonga and Beebyn hematite
deposits, which lie within tenement TR 70/3902H under the Iron Ore (Murchison)
Agreement Act (WA) 1973 (the State Agreement Act).
The previously stated estimated total Measured, Indicated and Inferred
Mineral Resources of 133.4 mt at an average grade of 58.5% Fe related to the
W14 lens at Madoonga, the W7 to W11 lenses at Beebyn and the W30-W31-W45 lenses
at Beebyn North (which lie wholly within E51/907).
On 7 April 2008, Midwest announced an increase in the number of drill
rigs to be used on its drilling programme at Weld Range,
with an additional 4 drill rigs mobilising to support the existing 7 drill rigs
on site. This increase in the drilling rig numbers is progressing well, with
ten drilling rigs currently in operation on site.
As part of the Weld Range
DSO Joint Venture studies with Sinosteel Corporation, updated geological models
have been developed for the Madoonga and Beebyn hematite-goethite ore lenses
generating additional Mineral Resources totalling 15.8 mt at an average grade
of 57.5% Fe (using a 50% Fe cut-off grade). These large deposits have been the
focus of an accelerated drilling campaign at Weld Range.
The W30, W31 and W45 lenses at Beebyn North are all 400-500m long in
strike and were previously targeted by drilling to a depth of approximately
100m vertical from natural surface. Additional infill, extensional, and
drilling to greater depth is planned for these lenses with the aim of upgrading
the Mineral Resources at Beebyn North and to increase confidence in their JORC
classification category. This work will commence during the current Quarter.
Many other substantial prospective iron ore lenses in the Weld
Range
tenements remain undrilled at this stage, due mainly to a focus on resource
development drilling programmes required over the Madoonga and Beebyn deposits
ahead of the PFS.
The most prospective of these areas are the W20 and W6 iron ore lenses
located on tenement E20/641, which form part of the Hampton Hill JV. These
lenses have a combined exploration target range of 35.4→45.0 mt. Exploratory
drilling campaigns are scheduled to commence at these prospects during the
current Quarter.
Midwest has scheduled substantial programmes of resource development
and exploratory drilling during the remainder of 2008 within TR70/3902H and
other tenements at Weld Range,
including sections falling within the Hampton Hill JV areas.
Technical details of the updated Mineral Resource estimation are
outlined below. These statements supersede all previous Mineral Resource
estimates for the Weld Range DSO
Project and are based on geological and mineralisation interpretations
completed for the individual deposits up to 29 February 2008.
Midwest is also progressing potential high grade iron ore projects in
proximity to Weld Range at Jack Hills and Robinson Range, as well as Koolanooka/Blue Hills and Koolanooka
magnetite further south in the mid west region of Western Australia.
- End -
For further information contact:
Martin Debelle Warrick
Hazeldine
Cannings Purple Communications
Ph: + 61 2 9252 0622 Ph:
+ 61 8 9485 1254
Mob: + 61 409 911 189 Mob:
+ 61 417 944 616
Map images available from http://www.purplecom.com.au/gallery.asp
Weld Range Mineral Resource estimates
CSA Australia Pty Ltd (“CSA”) was engaged by Sinosteel Midwest
Management Pty Ltd, the management company for the Sinosteel Midwest JV, to
update Mineral Resource estimates for the high-grade Weld Range
iron ore deposits. The Mineral Resource estimates are based on geological and
mineralogical interpretations completed by Sinosteel Midwest Management Pty Ltd
and provided to CSA using drilling and assay results up to 29 February
2008.
A summary of the classified Mineral Resource estimates is presented in
Table 1 below:
|
Table
1 Weld
Range DSO Project
Mineral Resource
Estimate as at 29th February, 2008
|
|
Category
|
Tonnes *
|
Fe%
|
|
Madoonga (W14) Hematite Deposit
(Cut off grade 50% Fe)
|
|
Measured
|
42,000,000
|
57.7
|
|
Indicated
|
19,100,000
|
58.0
|
|
Inferred
|
7,200,000
|
56.9
|
|
Total
|
68,300,000
|
57.7
|
|
Beebyn (W7, W8, W9, W10, W11)
Hematite Deposits
(Cut off grade 50% Fe)
|
|
Measured
|
30,900,000
|
60.2
|
|
Indicated
|
16,000,000
|
59.3
|
|
Inferred
|
15,100,000
|
58.7
|
|
Total
|
61,900,000
|
59.6
|
|
Beebyn North (W30, W31, W45)
Hematite Deposits
(Cut off grade 50% Fe)
|
|
Measured
|
0
|
0
|
|
Indicated
|
0
|
0
|
|
Inferred
|
19,000,000
|
57.3
|
|
Total
|
19,000,000
|
57.3
|
|
Total Mineral Resource Estimate
|
|
Measured
|
72,900,000
|
58.8
|
|
Indicated
|
35,100,000
|
58.5
|
|
Inferred
|
41,200,000
|
57.7
|
|
Total
|
149,200,000
|
58.4
|
*Note: All
tonnages are rounded to the nearest 100,000 tonnes
A summary of the technical details of the Mineral Resource estimation
process undertaken by CSA is outlined below.
Technical Summary:
CSA were contracted by Sinosteel Midwest
Management Pty Ltd to update the Mineral Resource estimates at the Weld Range DSO Project as at 29 February 2008, by
compiling updated resource models for the Madoonga and Beebyn iron ore
deposits. No new Mineral Resource update of the Madoonga or Beebyn deposits has
been completed since the ASX Announcement by Midwest Corporation Ltd on the 4th
September 2007.
Sinosteel
Midwest Management Pty Ltd supplied all geological and sampling data and
provided technical and geological support to CSA during the resource update
modelling processes for the Madoonga and Beebyn deposits. The resource models
for the deposits were updated by CSA and incorporate:
·
geological
mapping data;
·
RC and diamond
drilling data;
·
geological
interpretation;
·
additional
in-situ dry bulk density measurements; and
·
resource
classification based on geological confidence from surface mapping, drill hole
spacing, data QAQC integrity and variography.
The Mineral Resource estimates comply with
recommendations from the Australasian Code for Reporting of Mineral Resources
and Ore Reserves prepared in 2004 by the Joint Ore Reserves Committee (JORC).
The updated March 2008 Quarter Mineral Resource estimates
were based on the following parameters:
·
Resources of DSO iron mineralisation
have been defined at the Madoonga (W14) and Beebyn (W7 to W11) iron ore
deposits. The mineralisation and geological characteristics are defined by
mineralised envelopes based on a 50% Fe mineralisation cut off.
·
The primary analytical data used to
model the geology and estimate the Mineral Resources was generated from RC and
diamond drilling programs undertaken by Sinosteel Midwest Management Pty Ltd
between June 2006 and February 2008. Historical drilling has been
excluded.
·
Estimates for density were used in
the Mineral Resource modelling and are in line with values reported by
Sinosteel Midwest Management Pty Ltd from similar hematite-goethite lodes at
the Weld Range Project.
·
Ordinary Kriging estimation was
selected as the most appropriate method for grade estimation for the main
Beebyn and Madoonga deposits. Inverse Distance estimation was used for the
Beebyn North deposits. Resource classification was based on “the level of
confidence” of the geological interpretation, tonnage factors, geological
confidence represented by drill spacing and Kriging “Slope of Regression”
analysis.
Competent Person:
The information in the report to which the statement is attached that
relates to Mineral Resources is based on information compiled by Mr Malcolm Titley who is a Member of The Australasian Institute
of Mining & Metallurgy.
Mr Malcolm Titley (MAusIMM)
is a Principal of CSA and is responsible for the updated estimation of the
Mineral Resources for the Weld Range
deposits. Mr Titley has sufficient
experience which is relevant to the style of mineralisation and 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 “Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Titley
consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.
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