Emergent update on drill program at Beyondie Magnetite Project
Wednesday, 23 Sep 2009
Emergent Resources Limited is pleased to provide the following update on its 3rd phase drill program at its flagship Beyondie Magnetite Project in Western Australia's mid west Iron Ore region.
It advised that the drilling program nears its halfway point and that assay results are expected to be available by mid October. The 3rd phase drill program is designed to tighten the drilling density and upgrade the resource base at the Beyondie Project to a 1 billion tonne JORC compliant Inferred Resource. Drilling density will be reduced to 400 meters x 100 meters by the programs completion.
35 reverse circulation holes and 6 diamond holes have been completed in phase 3 to date. The drilling has focused on a 7 kilometers segment of the known 60 kilometers total strike length at Beyondie. The diamond drilling was designed to improve the geological understanding and provide competent samples to support metallurgical and engineering studies. A detailed ground magnetic survey has also been completed over the drilling area.
The 3rd phase drill program has also uncovered several new drill sections with significant widths of magnetite schist exceeding 150 metres and the area west of these intersections remains open. In addition the modeled thickness of the magnetite schist in the project's southwest is thicker than previously thought and has the potential to add to the resource at Beyondie.
Emergent Resources believes both these areas warrant drilling and has extended the 3rd Phase drilling to target these zones and anticipates that the extended drilling will lead to an increase in the previously stated Inferred Resource. It is delighted with the width of the magnetite intersections achieved in the latest drill program, which have significantly exceeded expectations and continues to confirm the world class potential of the project.
Emergent has also entered into a non binding MoU with China Metallurgical Investment Co Ltd for the development of the Beyondie Project which includes a 50:50 Development JV and AUD 200 million funding at the project, as well as an AUD 4.9 million placement to CMI.
Metallurgical test work to date has shown the potential for the project to produce a high grade magnetite concentrate of +68%Fe, with very low impurities. Emergent has the right to earn up to an 80% interest in the project by way of a joint venture with De Grey Mining Limited.
