AusQuest Limited (ASX: AQD) advises that assay results from the initial drilling programme at its Nameless Iron Ore Project, located 5 kilometres north west of Tom Price in the Pilbara region of Western Australia, have been received. This programme consisted of 64 vertical Reverse Circulation drill holes (100 metres apart) on 13 sections spaced 800 metres to 1,200 metres apart. The sections span a 13 kilometre strike length of the 15km long channel outlined by earlier surface mapping. Assay results confirmed the presence of channel iron mineralisation on all sections, returning values in excess of 50% Fe on nine of the thirteen sections drilled. Two zones of interest were outlined by the drilling; one at the eastern end of the channel (closest to Tom Price) with a potential strike length of approximately 5 kilometres and a smaller zone (1 to 2 kilometres in length) towards the western end, centred on section 565200E. Within the two zones of interest, grades for the two metre sample intervals ranged from 50 to 56% Fe, 3.0 to 10.0% SiO2, and 3.9 to 9.6% Al2O3, with average values, normalised by thickness, of 52.7%Fe, 6.4%SiO2 and 6.2% Al2O3. For comparison, typical grades quoted for the Robe River pisolite mineralisation are approximately 57.0%Fe, 5.4%SiO2 and 2.6%Al2O3. The average pisolitic iron grades returned from the drilling are lower than the grades achieved from previous surface sampling (55-58%Fe), due to higher levels of SiO2 and Al2O3 which probably reflect the clay content of the channel iron material. The company thinks it may be possible to reduce this clay content by processing (screening and washing) which would enhance the iron grade of the resultant product. However, no test work has been undertaken. While both the iron grades and contaminant levels (SiO2 and Al2O3) are not at the levels initially expected based on the surface sampling results, the drilling has confirmed the presence of substantial volumes of pisolitic channel iron mineralisation at Nameless. Better intersections from this initial drilling program are presented in the table below: Section Hole No Easting Northing Depth from Depth to Interval Fe% SiO2% Al2O3 % LOI 400 3400E RC058 573919 7494877 8m 12m 4 51.4 6.8 7.4 9.3 RC059 573847 7494805 10m 24m 14 50.8 7.6 8.2 8.3 RC060 573784 7494751 14m 18m 4 52.4 5.8 6.4 10.1 2600E RC057 573109 7495158 10m 22m 12 52.4 7.5 6.2 8.6 1800E RC053 572439 7495607 10m 28m 18 52.0 7.1 6.4 9.3 RC054 572405 7495584 8m 20m 12 53.8 5.6 5.8 9.0 572000E RC048 572004 7496299 4m 8m 4 51.1 7.6 6.4 9.3 RC07 571997 7496204 2m 20m 18 53.2 6.4 5.4 9.4 RC06 571998 7496118 0m 24m 24 53.4 6.2 5.8 8.8 571200E RC02 571204 7496489 2m 6m 4 52.4 7.5 6.8 7.8 RC03 571197 7496403 0m 20m 20 54.6 5.6 5.4 8.1 AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au RC04 571197 7496302 0m 6m 6 50.5 7.7 6.4 7.0 570000E RC045 570021 7497004 6m 10m 4 50.3 7.7 7.2 9.7 RC064 570018 7496846 4m 8m 4 52.5 6.4 6.3 9.6 568800E RC012 568796 7497106 12m 16m 4 50.8 7.6 6.6 9.6 RC013 568798 7497003 4m 8m 4 50.2 9.2 7.5 7.9 566400E RC016 566393 7497899 8m 12m 4 50.5 7.4 6.9 10.1 565200E RC033 565191 7497757 4m 10m 6 50.7 7.4 6.8 9.5 RC034 565199 7497700 6m 22m 16 53.5 6.0 5.3 9.4 RC035 565216 7497604 10m 18m 8 53.7 4.9 5.7 9.5 Note: All holes are vertical. Samples were collected at 2 metre intervals. Samples were dried, pulverised and assayed by X-Ray Fluorescence Spectrometry. Loss on Ignition (LOI 400) values reflect water of crystallisation of the Fe minerals within the samples. It is not possible at this stage to make any definitive statements regarding the commercial potential of the mineralisation due to the high Al2O3 levels in the samples. A comprehensive report on the drilling results will now be prepared and submitted to Rio Tinto, under the previously announced agreements covering the Nameless Project. Under these agreements, Rio Tinto has 60 days following receipt of this report to decide whether to proceed to the next stage of the agreement under which it can exercise a right to earn an interest in the Project. The Nameless Project is part of a portfolio of iron ore projects held by AusQuest in the Pilbara region, where the Company has assembled a substantial package of tenements (covering an area of ~1,400km2) in the Tom Price-Paraburdoo area. In addition, the Company has also secured a major drainage system (25km in length) immediately south of the Whaleback iron ore mine at Newman in the east Pilbara, where it has already identified pisolitic iron mineralisation at surface. The Company recently completed a second phase of scout drilling at the Rocklea Iron Ore Project, located 40km west of Tom Price. Analytical results for this drilling are awaited. Graeme Drew Managing Director COMPETENT PERSON’S STATEMENT The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears. AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au
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