encouraging iron assay resultsat hammersly, page-3

"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.”