magnetite intersections up to 35 metres, page-2

CAMEL HILLS EXPLORATION UPDATE
Highlights
 Reconnaissance Magnetite iron drilling completed
 Nine RC holes over 3.5km strike
 Magnetite intersected in all nine holes over thicknesses up to 35m
 Planning for further drilling and additional target testing underway
Desert Energy Limited (ASX:DSN) is pleased to announced that it has completed the initial drilling at its T21 magnetite iron-ore prospect at the Camel Hills joint venture project, central Western Australia where it is earning an initial 51% interest.
A total of 9 Reverse Circulation (RC) holes were drilled on 5 section lines across the outcropping magnetite-quartzite units. The holes cover a strike length of 3.5km of an airborne magnetic target with a total strike length of 6.2km. Samples of the iron-bearing intersections have been sent to a commercial assay laboratory for analysis.
In general the magnetite-quartzite units appear to comprise two sequences separated by granite pegmatites and schists. The eastern sequence is magnetite-rich with drill intersections up to 35m; the western sequence is non-magnetic, hematite-bearing with drill intercepts up to 155m. All of the holes returned various widths of magnetite-bearing rock, including two zones in CHT21RC002 over a 48m intercept; see attached Table.
Sample results are awaited prior to follow-up metallurgical testwork planned for the New Year and proposed follow-up drilling at T21 as well as drill testing of other magnetite-quartzite prospects.
Magnetite Iron Ore; Drilling
The T21 Prospect was identified by Desert from prospecting and surface sampling as having size potential for magnetite iron-ore. Up to four magnetite-quartzite units on surface, each up to 45m thick, are separated by magnetite-bearing shales. The sequence is possibly isoclinally folded and has been traced for almost 5km strike. See Figures 1 and 2.
POW approvals and Heritage Clearance were received in early December for an initial drill testing program at T21. Reverse Circulation drilling, as one or two angled holes on five section lines, have been completed in this initial test phase; a total of nine holes for 1161m drilled. These were designed to test for width, depth extent and grade of magnetite, and to provide larger samples for preliminary metallurgical testwork.
Each hole was sampled at 1m intervals and riffle-split to approximately 1kg for assay, and rejects stored on site. Assay samples were composited at 2m intervals and dispatched to a commercial laboratory for analysis. Results are expected in January.