GIRALIA EXPANDS WESTERN CREEK IRON ORE PROJECT AREA WITH SETTLEMENT OF NEW ACQUISITION
• Completion of acquisition of three new tenements in the Newman area of the Pilbara iron
ore province, Western Australia.
• Adjoins and compliments Giralia’s existing 100% owned Western Creek project, where
initial 29.4 million tonne iron ore resource recently announced.
• Recent drilling intersections reported by vendor including 34 metres @ 58.31% Fe, and 20
metres @ 59.41% Fe confirm extensions of Giralia’s deposit into newly acquired tenement.
The Directors of Giralia Resources NL ("Giralia") are very pleased to report that the Company hassignificantly expanded its Pilbara region iron ore holdings with the settlement today of the acquisition from Royal Resources Limited (“Royal”, ASX: ROY) of three iron ore prospective tenements adjoining the Company's 100% owned Western Creek iron ore project, on the outskirts of the town of Newman in the Pilbara Region of Western Australia.
Giralia recently announced an initial inferred iron ore resource estimate of 29.4 million tonnes @
57.6% Fe for Marra Mamba iron ore mineralisation at its wholly owned Western Creek tenement,
which directly adjoins the BHP Billiton iron-ore mining leases at Newman.
On 9 October 2008 Royal announced the sale to Giralia of tenements E52/1604, E52/1911 and
E52/1912, which adjoin Giralia’s Western Creek project. The consideration for the sale, which was settled today is:
a) an upfront cash payment of $2.0 million,
b) an assignment of 1 million fully paid Giralia shares, escrowed for six months, and
c) an assignment of 1 million fully paid Giralia shares, escrowed for 12 months.
Drilling results reported by Royal on 30 July 2008 confirm direct extensions to Giralia’s Western Creek resource on the newly acquired tenements, with better intersections of 34 metres @ 58.31% Fe from 10 metres depth, and 20 metres @ 59.41% Fe from 22 metres depth. The Company considers that data from the drilling traverse completed by Royal can be simply incorporated into the current resource model, resulting in an expansion of the existing resource at Western Creek without further drilling.
Other than the extensions to Giralia’s existing resource, the newly acquired area is also considered prospective for further iron ore mineralization hosted by:-
• the Marra Mamba Iron Formation
• pisolitic iron ore in Tertiary Channel Iron Deposits (“CIDs”).
At the “Homestead” prospect in the north of the newly acquired area, limited previous drilling by
Pacminex in 1975 intersected up to 16 metres @ 56.2% Fe in the Marra Mamba Formation. Recent surface sampling by Royal along strike from this drilling returned assays in excess of 62% Fe. Subject to permitting, Giralia plans to further drill test the Homestead prospect in November 2008, as part of the next major drill phase at Western Creek.
In addition an approximately 3 kilometre long channel iron deposit (CID) mesa has been mapped on the newly acquired tenements, with rock chip assays returning direct shipping iron grades.
• Completion of acquisition of three new tenements in the Newman area of the Pilbara iron
ore province, Western Australia.
• Adjoins and compliments Giralia’s existing 100% owned Western Creek project, where
initial 29.4 million tonne iron ore resource recently announced.
• Recent drilling intersections reported by vendor including 34 metres @ 58.31% Fe, and 20
metres @ 59.41% Fe confirm extensions of Giralia’s deposit into newly acquired tenement.
The Directors of Giralia Resources NL ("Giralia") are very pleased to report that the Company hassignificantly expanded its Pilbara region iron ore holdings with the settlement today of the acquisition from Royal Resources Limited (“Royal”, ASX: ROY) of three iron ore prospective tenements adjoining the Company's 100% owned Western Creek iron ore project, on the outskirts of the town of Newman in the Pilbara Region of Western Australia.
Giralia recently announced an initial inferred iron ore resource estimate of 29.4 million tonnes @
57.6% Fe for Marra Mamba iron ore mineralisation at its wholly owned Western Creek tenement,
which directly adjoins the BHP Billiton iron-ore mining leases at Newman.
On 9 October 2008 Royal announced the sale to Giralia of tenements E52/1604, E52/1911 and
E52/1912, which adjoin Giralia’s Western Creek project. The consideration for the sale, which was settled today is:
a) an upfront cash payment of $2.0 million,
b) an assignment of 1 million fully paid Giralia shares, escrowed for six months, and
c) an assignment of 1 million fully paid Giralia shares, escrowed for 12 months.
Drilling results reported by Royal on 30 July 2008 confirm direct extensions to Giralia’s Western Creek resource on the newly acquired tenements, with better intersections of 34 metres @ 58.31% Fe from 10 metres depth, and 20 metres @ 59.41% Fe from 22 metres depth. The Company considers that data from the drilling traverse completed by Royal can be simply incorporated into the current resource model, resulting in an expansion of the existing resource at Western Creek without further drilling.
Other than the extensions to Giralia’s existing resource, the newly acquired area is also considered prospective for further iron ore mineralization hosted by:-
• the Marra Mamba Iron Formation
• pisolitic iron ore in Tertiary Channel Iron Deposits (“CIDs”).
At the “Homestead” prospect in the north of the newly acquired area, limited previous drilling by
Pacminex in 1975 intersected up to 16 metres @ 56.2% Fe in the Marra Mamba Formation. Recent surface sampling by Royal along strike from this drilling returned assays in excess of 62% Fe. Subject to permitting, Giralia plans to further drill test the Homestead prospect in November 2008, as part of the next major drill phase at Western Creek.
In addition an approximately 3 kilometre long channel iron deposit (CID) mesa has been mapped on the newly acquired tenements, with rock chip assays returning direct shipping iron grades.
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