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MEDIA RELEASE
21 January 2008
Mt Caudan Drilling Results
Highlights
• Mineralisation intersected in
• Drilling completed over 900m within a 1.5km long target.
• Better results include:
51m @ 58.8% Fe, 34m @ 57.8% Fe, 12m @ 58.6%
Cazaly Iron Pty Ltd (Cazaly) has reported the following summary
carried out at Mt Caudan, Parker Range
Following initial ground assessment and positive results from surface sampling
has recently completed a first pass reconnaissance drill program over the Mt Caudan iron prospect at
Parker Range. A total of 13 reverse circulation (RC) drillholes were completed for 882m.
have proven to be highly encouraging and include an outstanding result of
11m.
Mineralisation was intersected in all holes over 900m of strike. The host
forms a prominent ridge at Mt Caudan, dips approximately 50º to the northwest and pinches and
swells from 15m to 40m in thickness.
rich mineralisation) at surface shed
The drilling followed up on results from exploration mapping and surface sampling which focused on
the Mt Caudan banded iron formation.
strike extent of 1.5km. Several samples
Mineralisation remains open in all directions.
of limited outcropping BIF providing encouragement for further discoveries in the project area.
thick mineralisation found in PKRC0001 and PKRC0008 also may indicate significant near surface
enrichment and is an obvious target on other drill sections where drilling of the BIF has occurred at
deeper levels.
Pursuant to the Mt Caudan Iron Ore Farm
Resources Limited, has the right to earn 80% of the iron ore rights
Caudan through the expenditure of $
The Mt Caudan Project lies approximately 15 kilometres south
60 kilometres by road south of the Perth
ineralisation all holes drilled.
Fe, 25m @ 56.9% Fe
of results from a dr
, Range, WA.
sampling, Cazaly
51m @ 58.8% Fe
banded iron formation (BIF)
There is a small amount of low-grade canga (secondary iron
from the BIF ridge.
Rockchip samples were initially taken along the BIF over a
returned assay results greater than 60% Fe.
The excellent result from PKRC0001 occurs in an area
eralisation Farm-in, Cazaly Iron Pty Ltd (Cazaly), a subsidiary of Cazaly
in certain iron ore tenements at Mt
1million over three years, subject to certain conditions precedent
south-east of Marvel Loch and approximately
Perth–Kalgoorlie railway.
1
drilling program
planned and
Results
from
The
, precedent.
2
Table of Significant Intercepts (>55% Fe)
Hole
Intercept (all in %)
HoleID East North Depth From Length Fe SiO2 Al2O3 P S LOI
PKRC0001 742426 6499572 44 0 34 57.8 3.81 2.96 0.02 0.11 9.91
PKRC0002 742408 6499579 68 6 25 56.9 3.67 3.99 0.01 0.13 10.08
43 13 57.7 3.75 2.91 0.03 0.07 9.73
PKRC0003 742391 6499260 56 17 5 59.3 3.09 1.16 0.01 0.19 8.24
34 11 58.0 3.19 1.93 0.02 0.07 7.78
PKRC0004 742367 6499270 65 3 2 56.6 5.74 4.46 0.01 0.09 7.26
46 15 56.4 3.38 1.71 0.01 0.05 8.35
PKRC0005 742320 6499032 53 7 7 56.6 1.87 5.27 0.01 0.25 8.81
26 5 56.0 2.18 1.76 0.01 0.23 9.90
42 8 59.4 2.70 1.29 0.01 0.05 7.80
PKRC0006 742302 6499039 75 6 9 58.7 4.75 1.01 0.01 0.25 8.59
41 6 56.6 2.57 0.85 <0.01 0.06 10.28
50 9 57.0 5.54 1.50 0.01 0.04 9.37
62 3 59.2 3.33 1.52 0.02 0.05 9.11
PKRC0007 742278 6499049 77 0 6 56.4 7.91 3.33 0.01 0.05 6.82
12 3 56.0 7.73 1.92 0.01 0.06 8.23
20 7 55.7 5.84 1.28 <0.01 0.16 10.19
62 9 58.5 3.81 0.86 0.01 0.04 10.02
PKRC0008 742252 6498796 62 11 51 58.8 3.90 1.56 0.02 0.10 9.00
PKRC0009 742226 6498805 86 52 10 56.8 7.24 1.04 0.03 0.05 8.83
72 10 57.4 4.43 3.56 0.02 0.13 8.30
PKRC0010 742207 6498814 83 49 25 56.6 4.14 1.67 0.01 0.05 9.56
PKRC0011 742231 6498739 59 23 3 56.2 3.07 1.45 0.02 0.16 10.78
28 6 55.5 3.55 1.50 0.02 0.15 10.56
39 12 58.6 5.97 0.91 0.01 0.04 9.02
PKRC0012 742211 6498748 74 41 3 57.3 3.77 1.19 0.02 0.09 10.61
49 4 57.8 3.58 1.75 0.01 0.06 9.85
57 9 56.9 6.35 1.79 0.02 0.05 8.98
PKRC0013 742194 6498755 80 56 8 55.5 3.42 1.12 0.01 0.06 9.47
67 7 59.1 3.96 1.36 0.04 0.04 9.85
Holes located on WGS84 Zone 50
All assays conducted by XRF spectrometry on fused bead with Loss on Ignition (LOI) determined by Thermo-
Gravimetric Analysers.
Significant results calculated over a minimum 2m width using 55% Fe lower cut-off and up to 2m of internal dilution.
3
Previously a review of historic data indicated that the Mt Caudan area hosted several significant iron
deposits with investigations made between 1965 and 1969 suggesting exploration targets ranging
between 5 to 30M tonnes. The targets are conceptual in nature and should not be construed as an
estimate of Mineral Resources or Ore Reserves. The tonnage range for the exploration prospect at
Mt Caudan is based on estimations completed by previous operators between 1965 and 1969 and
reported to the Department of Industry and Resources.
The Yilgarn Iron Province has a history of large-scale iron production, with the first iron ore exported
from Western Australia coming from the Koolanooka deposit in the Yilgarn during the mid 1960s.
More recently, iron ore mining in the Yilgarn has been characterised by modest production from
several small and dispersed hematite deposits, such as Koolyanobbing.
Cazaly has reported that results from its work have shown that the Mount Caudan project has the
potential to host significant resources of iron ore. The Company is currently planning follow up
drilling.
For further information, please contact Warren Beckwith on phone (08) 9388 9961 or send an email to
[email protected]
Warren Beckwith
Director
The information in this report that relates to the Exploration Results, Mineral Resources or Ore
Reserves of the projects owned by Cazaly Resources Ltd is based on information compiled by Mr.
Clive Jones, who is a Member of The Australasian Institute of Mining and Metallurgy and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves’. Mr. Jones consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
4
Figure: MAGNETIC IMAGE SHOWING SURFACE SAMPLE LOCATIONS
742000 mE 743000 mE
6500000 mN
6500000 mN 6498000 mN
742000 mE 743000 mE
6498000 mN 6499000 mN
6499000 mN
Project Boundary Project Boundary
Mt Caudan Prospect
Cazaly Drill Hole
Rock Chip Results
>60% Fe
55 - 60% Fe
50 - 55% Fe
30 - 50% Fe
<30% Fe
Image: Total Magnetic Intensity
Magnetic High -
Interpreted to be
BIF horizon
PKRC0001
34m @ 57.8% Fe
PKRC0003
11m @ 58.0% Fe
PKRC0006
9m @ 58.7% Fe
PKRC0008
51m @ 58.8% Fe
PKRC0011
12m @ 58.6% Fe
900m 900m
Project Location
Southern Cross
Marvel Loch
Mt Caudan
Prospect
Parker Range
Project
Highway