Emergent near USD 200 million JV with China Metallurgical

Saturday, 24 Oct 2009

Emergent Resources' Beyondie iron ore project is looking even better as it nears a USD 200 million JV with a Chinese investor. The state owned China Metallurgical Investment Corporation this week completed due diligence on the 50:50 JV that will see it fund Beyondie with USD 200 million plus a USD 5 million share deal that will give CMIC a 15% stake in Emergent.

Drilling along a 12 kilometers strip on the western side of Beyondie's 60 kilometers strike, Emergent reports intersections including 135 meters at 27.53% Fe from the surface, 139 meters at 27.65% Fe from 60 meters and 109 meters at 26.9% Fe from the surface.

The project has an inferred resource of 127 million tonnes at 28.15% Fe that has been confirmed from an 11 kilometers portion of the 60 kilometers strike and a target mineralization of a further 500 to 600 million tones grading 25% to 30% Fe.

Mr Garry Hemming MD of Emergent said that the most significant fact was that the thickest intersections drilled to date lie outside the previous drilled areas used to define the maiden resource. He added that "The intersections confirm the continuity of the mineralization and the potential for the project to host large tonnages of mineralization. The latest results demonstrate further proof of the potential for the Beyondie magnetite project to be developed into a world-class iron magnetite deposit.''

Beyondie is adjacent to the Great Northern Highway and Goldfields natural gas pipeline and has the potential to benefit from planned shared rail and port infrastructure.