encouraging iron assay results on 19 rock chip

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AREA E
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AREA D SSSSSSSSS111111111888888888
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0 2 km
Rock chip sample site
Interpreted Channel Iron Deposits (CID)
Interpreted Detrital Iron Deposits (DID)
Modern Colluvium
Late Tertiary Sand and Gravel
Brockman Iron Formation
Figure 1 Sample Locations on Dr Russell’s recent geological interpretation of the Hamersley E47/882.
Australian Securities Exchange Announcement
ENCOURAGING IRON ASSAY RESULTS ON 19 ROCK CHIP SAMPLES
FROM HAMERSLEY E47/882, WA
23 May 2008
The Manager
Companies Announcements Office
Australian Securities Exchange
20 Bridge Street SYDNEY NSW 2000
Hamersley E47/882
Iron Ore
100% Flinders Mines
Introduction
Flinders Mines Limited (Flinders)
released an ASX announcement
on 30 April 2008 which described
HIGHLIGHTS
• Assays have been returned on 19 rock chips of Channel Iron Deposit (CID) and Detrital Iron
Deposit (DID) type samples collected by Dr Richard Russell on 16 and 17 April.
• Samples contain from 48.1 to 64.9% iron with an average of 59.6%.
• Results are encouraging with high iron and low deleterious elements.
• It is emphasised that these samples do not represent a systematic sampling exercise and are
not equivalent to drill intersections or resource grades.
Flinders Mines Limited
ABN 46 091 118 044
www.flindersdiamonds.com
62 Beulah Road
Norwood
South Australia 5067
PO Box 3126
Norwood
South Australia 5067
telephone 61 8 8132 7950
facsimile 61 8 8132 7999
email [email protected]
the results of consultant Dr Richard
Russell’s review of the iron ore
exploration target in the Hamersley
E47/882, WA. The release noted
FLINDERS
MINES
��
Hamersley
2
the sampling of 19 outcrops of
mostly DID (16) and some CID (3),
which were considered to be typical
of the main secondary iron types in
the licence area. The samples were
assayed at the SGS Australia Pty
Ltd laboratory in Perth and results
were received by Flinders Mines
in Adelaide on 20 May 2008.
Flinders asked Dr Russell to assess
the results and his report is given
below.
The actual assays are reproduced
in Table 1 and sample locations
shown on a copy of Dr Russell’s
new geological map in Figure 1.
An example of one of the sites for
samples S11 & 12 is shown in
Figure 2 and an example of the DID
and CID rock types from the site of
S1 to S4 is shown in Figure 3.
Consultant’s Report by Dr R. Russell
“The results of the samples
collected during field
reconnaissance in E47/882 on the
16th and 17th April have been
returned from the laboratory. The
samples are rock chips taken from
outcropping detrital iron formation
(DID) and channel iron formation
(CID). None of them represent
subsurface drill samples. The
outcrops sampled were widespread
in the licence area (Figure 1). The
intention was to cover all types of
outcrop in all the prospective areas
of the lease. It must be noted that
the outcrops of detrital iron deposit
(DID) and channel iron deposit
(CID) are small and are thought to
represent only the exposed edges of
much larger CID and DID deposits
that may lie under superficial cover
in the valley floors (as shown by
Figure 2). The drilling planned by
Flinders Mines will be the best
way to properly evaluate these
undercover deposits.
The laboratory results obtained
from the rock chip samples are
encouraging. The average iron
grade of all the 19 samples taken in
E47/882 is 59.64%. The samples
contain a low proportion of the
deleterious minerals, silica and
alumina. The levels of phosphorus
are also relatively low, which is a
further favourable outcome. The
iron content compares favourably
with the average grade of 56%
Fe announced by Fortescue
Metals Group (ASX Release, 15th
November 2007) for the CID in
Serenity Valley which adjoins
E47/882 to the southeast. They
also compare favourably with the
average grade of 56.9% Fe in CID
from Rio Tinto’s Caliwingina North
deposit located about 10km north
of E47/882 (ASX Release, 7th
February 2008).
The results strongly suggest that
the major CID system discovered
by Fortescue Metals in Serenity
Valley extends into the southern
parts of the Flinders licence area.
Furthermore, the wide distribution
of positive samples in the valleys
in the northern parts of E47/882
suggest that high grade DID’s and
CID’s probably also occur in the
major northward-orientated valleys
in the licence area.
All the samples were taken from
outcrop and are generally not
representative of the vertical section
of iron in the project area. However,
the samples S2 to S4 and S8/S9
were taken at intervals down cliffs
of CID/DID outcrop in ‘Area A’.
These cliffs are, in effect, vertical
sections. The samples therefore
give some indication of the variation
of iron content with depth. It is
significant that both sets of samples
(S2 to S4 and S8/S9) returned
consistent high-grade iron results
averaging about 58% Fe. Although
these samples represent only small
tests on the edge of the system in
‘Area A’, the results do suggest that
high iron grades may be consistent
throughout the profile in the major
deposits lying undercover in the rest
of the licence area.”
R. Russell 22 May 2008
Sample No Lithology Description Fe % Al2O3% SiO2% P % LOI %
S1 CID Eastern edge of deposit at Waterfall. Talus flooding from the east 57.5 5.81 6.09 0.052 3.91
S2 CID/DID Top of the waterfall 58.6 5.9 5.31 0.055 3.34
S3 CID Transition beds between dominantly DID at surface and underlying CID at the Waterfall. El. 580m 57.4 3.65 5.43 0.113 7.17
S4 CID Lower CID unit at Waterfall. Goethite and limonite on fractures 57.3 3.27 5.65 0.084 7.73
S5 DID DID on hillside to W of the Waterfall. W edge of CID/DID system 62.2 2.83 3.05 0.093 3.67
S6 DID W end of DID ramp to SW of the Waterfall. 'Biscuit' canga underlies. 64.9 1.35 1.96 0.117 2.08
S7 Biscuit Canga Underlying the DID ramp in the upper reaches of Area 'A'. Enriched P bedrock. El 640.4m 48.1 4.66 16.2 0.096 8.06
S8 CID/DID Higher up the profile in main part of secondary iron deposit 58.8 3.42 5.35 0.098 4.94
S9 CID/DID Top of profile. Some weathering on flat sfc of ramp. 56.8 6.38 6.1 0.058 3.22
S10 DID Coarse DID on W edge of DID ramp to the W of the major creek in Area 'C' 59 6.71 4.3 0.263 2.34
S11 DID Bedded DID on ramp on W end of Area 'E' valley 61.8 0.98 1.1 0.069 8.49
S12 DID Ramp on W edge of Area 'E'. DID is 8-10m thick. Some CID 59.4 4.49 5.18 0.107 2.72
S13 DID Surface of ramp in north of Area 'E' 59.3 4.47 6.33 0.098 2.42
S14 DID Half way down DID profile, ramp in north Area 'E' 61 2.87 4.73 0.106 2.74
S15 Biscuit Canga Canga below DID on ramp at the head of central creek, Area 'D'. 56.4 2.28 3.05 0.225 11.5
S16 DID High grade DID immediately overlying S15 64.4 1.36 1.23 0.1 2.88
S17 DID High grade DID on edge of ramp, northern creek, Area 'D', Vauncelot prospect. 62.5 2.86 3.13 0.087 2.29
S18 DID Palaeochannel to the south of 'Iraklis' prospect 63.7 2.82 2.77 0.098 1.72
S19 CID/DID Palaeochannel at the head of the south channel, Area 'D'. 64.2 2.17 3.51 0.102 0.57
Average 59.6 3.59 4.76 0.106 4.3
Table 1 Channel Iron, Detrital Iron and Canga samples collected from E47/882 on 16 & 17 April, 2008.
NB Canga is a variety of DID, Fe = iron, Al2O3= alumina, SiO2 = silica, LOI = Loss on Ignition
3
Figure 2 The upper edge of the DID ramp at the western edge of Area E – samples S11 & 12 are from this outcrop where the section is about
12 metres thick.
Forward Program
Flinders is preparing to commence
drilling in Area E as soon as
possible, probably within the next
two to three weeks. A RC drill rig
has been contracted, Heritage
clearance surveys are nearly
complete and DOIR approval of the
work program is expected near the
end of May.
For further information please contact:
Kevin Wills on
08 8132 7950 or 0419 850 997
Duncan Gordon - Investor relations on
08 8232 8800 or 0404 006 444
Email: [email protected]
The information in this report that relates to Exploration Results, Mineral Resources
and Ore Reserves is based on information compiled by Dr K Wills who is a fellow of
the Australasian Institute of Mining and Metallurgy. He has more than five years
of relevant experience in the style of mineralisation and types of deposit under
consideration and consent to inclusion of the information in this report in the form
and context in which it appears. He qualifies as Competent Persons as defined in the
2004 Edition of the “Australasian Code for reporting of Exploration Results, Mineral
Resources and Ore Reserves”.
Dr Kevin Wills
Managing Director
23 May 2008
Figure 3 Photo of typical DID sample
at left and CID sample at right from
the site of samples S1 to S4 where the
section is at least 8 metres thick to the
water level (see Figure 3 in Flinders ASX
Release dated 30.04.08).