HIGH GRADE IRON ORE DRILL RESULTS FROM WESTERN CREEK

KEY POINTS 

· Broad intervals of high grade, near surface Marra Mamba iron mineralisation from Phase 1 RC drilling, including:

   

  36m @ 60.8% Fe within 73m @ 55.9% Fe from 5m depth (WRKRC314)

  22m @ 60.0% Fe from 11m depth (WRKRC315)

  28m @ 58.3% Fe from 17m depth (WRKRC316)

  32m @ 58.1% Fe from 14m depth (WRKRC323)

   

· Results improve upon previous drill results and expand iron potential

 

· Drilling outlines Marra Mamba exploration target of 13-21Mt at 56-59% Fe

Pilbara explorer, Warwick Resources Limited (ASX:WRK) today announced highly encouraging iron ore intersections from Phase 1 RC drilling at its 100% owned Western Creek iron ore project near Newman. 

Western Creek is located 20km to the west of Newman and approximately 15km to the west of BHP Billiton’s Whaleback Iron Ore Mine (Figure 1). The project tenement adjoins BHP Billiton’s Prairie Downs group of mining leases. 

The main target at Western Creek is a 3km long x 200-300m wide outcrop of iron enriched Marra Mamba Formation located in the northwest portion of the project tenement E52/2160. BHP explored this target in the early 1990’s and completed 14 broadly spaced scout RC drill holes on the ground now held by Warwick Resources. BHP obtained some significant iron ore intersections from shallow depths, including 36m @ 59.2% Fe from 9m depth and 21m @ 59.2% Fe from 21m depth (WAMEX item 8813).

In December 2008, the Company completed an initial phase of drilling at the Western Creek project, comprising 15 RC drill holes for 796m. The drilling focused on the eastern half of the Marra Mamba target and included 3 holes drilled to “twin” former BHP holes, in order to verify BHP’s results. Results of the drilling are shown in Table 1 and Figure 2.

Key results of the drilling are:

· an intersection of 73m @ 55.9% Fe (WRKRC314), which is evidence of iron mineralisation extending to twice the depth previously recognised at the project (Figure 3);

· the mineralisation remains open to the south beneath clay overburden (Figure 3); 

· strong intersections from the western-most drill section: 32m @ 58.1% Fe (WRKRC323), 19m @ 55.3% Fe (WRKRC324) and 14m @ 60.0% Fe (WRKRC325), indicating that the mineralisation remains open to the west; and

· Warwick Resources’ twin drill holes returned net positive variance (+12%) in iron content compared to corresponding intervals in BHP holes.

 These results significantly expand the exploration potential of the Marra Mamba target.

Based on positive results from the limited drilling to date, the Company considers the Western Creek project to have a Marra Mamba exploration target of 13 to 21 million tonnes at 56% to 59% Fe. This exploration target is based on a mineralised area of approximately 380,000m2 defined by drilling intersections >50% Fe, average drill intersection widths and grades, and typical ranges of values for Marra Mamba iron ore bulk densities. This exploration target is conceptual in nature and should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves as defined by the JORC Code (2004). Warwick Resources has not yet reported Mineral Resources for the Western Creek project. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource. 

Warwick Resources Managing Director Bruce McQuitty said the strong drill results provided early impetus to the Western Creek project and came less than 4 months after grant of the project tenement.

“We have been fortunate to pick up Western Creek during a period of high competition for prospective iron ore ground. The project came with the added bonus of prior drilling results, providing us with an early focus for our exploration”, Mr McQuitty said.

Other iron targets

In addition to the demonstrated Marra Mamba iron mineralisation, Warwick Resources has identified five separate channel iron deposits (CIDs) on the project, totalling over 6km in length (Figure 1). The CIDs occur as mesas, typically 50-150m wide, capped with pisolitic haematite-goethite iron mineralisation.

A steeply dipping unassigned BIF unit, displaying surficial iron enrichment, outcrops to the south of the Marra Mamba target (Figures 1 & 2). The BIF unit is of the order of 10-30m wide and strikes in an east-west orientation semi-continuously for over 7km. The unit exhibits strong iron enrichment in outcrop. 

The Company applied for 9 tenements in the Western Creek region during the December 2008 quarter. Of these, seven tenements have competing applications and are expected be subject to ballot. 

The Company intends to undertake detailed mapping of the Marra Mamba target and preliminary mapping and rock chip sampling of other iron targets during the current quarter.