12 December 2008 ASX RELEASE Significant Increase in Carina Resource Yilgarn Iron Ore Project • Inferred Mineral Resource estimate for Carina deposit increased to 27.8Mt at 58.6%Fe • 79% increase in previous resource tonnage with increased iron grade Polaris Metals NL is pleased to announce that an updated resource estimate has been completed for its 100% owned Carina deposit. At a 55% Fe cutoff, the estimate resulted in an Inferred Mineral Resource of 27.8Mt at 58.6% Fe. Apart from representing a 79% increase in resource tonnage in comparison with the May 2008 Resource statement (15.6Mt at 57.7%Fe), there has been an increase in iron grade and a decrease in the grades of impurities - alumina, silica and phosphorous.
The work was completed by resource estimation consultants Hellman and Schofield Pty Ltd. Ordinary Kriging was used for grade interpolation within a mineralised envelope based on geological logging and assaying results. Tonnage calculations assume densities of either 2.9 or 3.4 tonnes per cubic metre for surficial hard-pan and deeper supergene mineralisation, respectively. The Mineral Resource estimate is reported in accordance with the 2004 JORC Code. The deposit outcrops as a low ridge of hematite/goethite. The lower grade surficial hard-pan material averages approximately 15 metres in thickness and represents only 2% of the estimated resource. The mineralisation forms a steeply west dipping isoclinally folded syncline over 1.6 kilometres in strike length to a maximum depth of 220 metres below surface with widths averaging approximately 40-50 metres. Drilling to date has not yet fully defined the depth extent of the mineralisation. A total of 182 holes for 22,400m of drilling was completed at Carina with analyses for only 72 holes returned at the time of resource estimation. Completion of analyses including the check sample data will enable a further resource estimate to be completed. Polaris anticipates that this will result in an upgrade of substantial portions of the resource to an Indicated or Measured Resource classification.
A recently completed pre-feasibility study (PFS) based on the mining of the Carina and Chamaeleon iron ore deposits located 60km north of Koolyanobbing in Western Australia (Figure 1) from late 2010 indicated the project is potentially viable. The PFS was based on a resource of 20Mt but the increase in estimated resource tonnage for Carina will enable the Company to complete a feasibility study on a larger resource base and higher production rates. There also remains substantial additional exploration potential in the 12 km long Carina-Chamaeleon corridor. All field work has been completed until 2009 and the field camp at Carina demobilised. Further studies continue in conjunction with port and rail providers to identify access conditions and infrastructure requirements to the existing ports and public access rail network in southern WA which lies within 60 kilometres of the project. A decision on the preferred Port (Esperance or Kwinana) is now expected in January 2009. Finalisation of the preferred export option is a key requirement prior to formal commencement of a planned bankable feasibility study. Other studies such as environmental characterisation, metallurgical, geotechnical, and hydrogeological continue in the interim. Discussions also continue with potential funding partners. POLARIS METALS NL Jonathan Lea Managing Director
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