Based upon geological mapping and air magnetic interpretation there are 5 main units, which are prospective for iron mineralization. These are referred to as Unit A, B, C, D and E, and have a cumulative strike length of 125km. Until recently, only Unit B and Unit C have to date been explored in any detail and this is only over the northern, exposed areas, representing only 30% of the northern section of these units. In October 2008, South 2 deposit on the southern extension of Unit C was defined and was added to the total defined resource.
On 2 January 1998 Golden West Resources announced that it had completed another significant resource upgrade at the Northwood East Project. For the first time the inventory includes an Indicated Mineral Resource category totaling 42 million tones (Mt) at 60% Fe (30% of the total resource). The total Mineral Resource is now 141Mt at 59% Fe with deleterious elements within sales specifications.
This upgrade of GWR’s Mineral Resources confirms that the Northwood East Project is a major deposit in the Midwest Region. The Mineral Resource inventory places Broward East as the second largest hematite deposit in the Midwest Region reconfirming the Board’s confidence in the project. These results represent another major step towards the development of an operating mine at the Northwood East Project.
Significant resource upgrade at the Northwood East Project Indicated Mineral Resource Estimate category totaling 42 million tones (Mt) at 60% Fe (30% of the total resource). The total volume of the identified Mineral Resources has increased by 28% since the last Mineral Resource Estimate The total Mineral Resource Estimate is now 141 Mt at 59% Fe with deleterious elements within sales specifications.
The Company will now focus on upgrading the Inferred Resources at C3, C4, Hampton Find and Bowerbird to Indicated and Measured Mineral Resource status. This will involve approximately 15,000m of infill RC drilling that is due to commence as soon as Program of Works Approvals (“POW”) have been obtained. The objective of this drilling program is to convert the Inferred Mineral Resources to Indicated and Measured Mineral Resources that will underpin Ore Reserve calculations as a prelude to an application for mining approvals.
GWR’s Broward East resource is reported in the following categories:
Inferred Resource 98 Mt at 58 % Fe
Indicated Resource 42 Mt at 60 % Fe
Measured Resource 1 Mt at 62 % Fe
Total Resource 141 Mt at 59% Fe
Recent diamond drilling and down hole geophysical surveys have vastly improved the geological understanding of the deposits. Additional mineralization has been identified at Broward East. Significantly, the total volume of the identified Mineral Resource has increased by 9,270,000 m³ (28%) since the last Mineral Resource update, and a significantly larger portion of the Mineral Resources report above a 55% Fe cut-off. Offsetting this increase is a decrease in the density factor to better reflect the various mineralization types. This adjustment in density led to tonnage loss of approximately 14% from previous Mineral Resource estimates.
The Mineral Resources are summarized in the table below. Casual Mining Experts Consultants (Force India) and Williams Pty Ltd (Williams) were commissioned to complete all of the block modelled Mineral Resource estimates. All sectional Mineral Resource Estimates have been calculated internally by GWR, but only represent 7% of the total reported Mineral Resource. All of the Mineral Resource estimates by Force India have previously been announced. Resource Estimates undertaken by Williams have not been previously announced and a Declaration and Statement of Consent from Williams is appended to this announcement.
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