Interesting iron ore news from Warwick ResourcesNote: HLX is...

Interesting iron ore news from Warwick Resources
Note: HLX is also active in the Pilbara (i.e. south-eastern extensions of the Robe River drainage system).

ASX and Media Release
11 May 2007

WARWICK RESOURCES IDENTIFIES CHANNEL IRON MINERALISATION NEAR NEWMAN

KEY POINTS

• Channel Iron Deposit (“CID”) identified near Jimblebar gold project in the Pilbara

• Additional CID targets to be evaluated prior to drill testing the identified channel

• First drilling programme completed at Copper Range and Jimblebar – results due early June 2007
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Pilbara explorer, Warwick Resources Limited (ASX:WRK) today announced it has identified channel fill iron mineralisation near its Jimblebar Gold project located near Newman in Western Australia.

The CID was discovered during field reconnaissance of three CID targets recently identified by Southern Geoscience Consultants (SGC) from airborne magnetic survey data. The discovery is located 8km from BHP Billiton’s Jimblebar iron ore mine in a prolific iron ore production region dominated by major and emerging iron ore companies (Figure 1).

Warwick Resources Technical Director Bruce McQuitty said “The CID is an exciting development for Warwick Resources. It demonstrates that our field programmes are continuing to upgrade the potential of the Company’s tenements which are well positioned near existing infrastructure and operating mines.”

“Warwick intends to undertake an initial drilling programme to test the thickness of the mineralisation and the possibility it may extend beneath alluvial cover. Other CID targets have been identified from the airborne magnetic survey data and now deserve follow up investigation after this initial success.”

A total of 9 rock chip samples were taken from the CID deposit, including four 25m channel samples from an east-west traverse near the southern end of the mesa (tabular hill). The channel samples returned high iron grades of between 54-59% with low contaminants (Table 1). These values are similar in tenor to grades reported from pisolitic iron deposits mined elsewhere in the Pilbara

Description of the mineralisation

The channel fill iron mineralisation outcrops as a 3km long NNE-striking mesa from 75m to 150m wide on the Company’s tenements.

The mineralisation is coarsely stratified and dips shallowly to the east beneath unconsolidated sand and alluvium (Figures 2 & 3). The mineralisation is up to 5m thick where it is exposed at the southern end of the mesa and appears to thicken towards the east (Figure 3). The iron pisolite contains exotic rounded pebbles and cobbles (Figure 4) and plant fragments typical of channel and valley fill deposits of the Robe River type.

Exploration potential

Three isolated outcrops of iron pisolite and laterite occur 1km to the east of the Jimblebar channel. These outcrops are visible in the Landsat image (Figure 2) and could indicate the presence of a more extensive sheet of iron pisolite mineralisation buried beneath shallow alluvial cover of the Jimblebar Creek plain.
Additional smaller channel iron outcrops have been recognised in valleys in the hills to the west of the Jimblebar CID and may represent tributaries of the Jimblebar channel.

Mapping and sampling programmes will commence shortly to be followed by a drilling programme in June, subject to completion of heritage clearances, to test the thickness of the mineralisation.

Two other CID targets identified by SGC have received only cursory field inspection but appear to relate to shallow magnetic sources buried beneath recent sand and alluvial deposits. The magnetic data is being reinterpreted by SGC in light of the recent discovery.
First Drilling Programme completed at Copper Range and Jimblebar

The Company has completed a 1,200m drilling programme at the Copper Range copper project and the Jimblebar gold project. The results are expected to be available in early June 2006.