initial infered resource of 11.7 mt at 57.6 fe

ASX and Media Release
9 September 2008

INITIAL INFERRED RESOURCE OF 11.7 Mt @ 57.6% Fe AT JIMBLEBAR RANGE

KEY POINTS

• Initial ‘Inferred Mineral Resource’ of 11.7Mt @ 57.6% Fe at Jimblebar Range
• Potential to increase resource by targeting extensions and identifying new areas of BIF enrichment
• Strategic location only 8km from near BHP Billiton’s Jimblebar mine and rail head
• Company to investigate development opportunities
The directors of Pilbara explorer, Warwick Resources Limited (ASX:WRK) are pleased to announce an initial
Inferred Mineral Resource1 at its 100% owned Jimblebar Range iron ore project as follows:
Jimblebar Range Project – Inferred Mineral Resource at 50% Fe Cut-off
Tonnes Fe% SiO2% Al2O3% P% S% LOI% CaFe%
11,700,000 57.6 7.0 2.2 0.06 0.04 7.7 62.4
Jimblebar Range is located near Newman in Western Australia’s Pilbara region and is only 8km from BHP Billiton’s
large Jimblebar iron ore mine and railway (Figure 1 location plan). It is one of a suite of iron ore projects being
developed by Warwick Resources in the region.
The deposit consists of two keel-shaped zones of supergene haematite-goethite mineralisation overlying a southeasterly
dipping sequence of banded iron formation (Figure 2). The northern zone is approximately 400m long by
200m wide, up to 58m thick and is open to the northeast. The southern zone is approximately 500m long by 100m
wide, up to 60m thick and is open to the south. The mineralisation displays a strong vertical zonation, with higher
grade (+60% Fe) mineralisation concentrated in the lower part of each zone (see Figure 3).
Significantly, there is potential to increase the size of the resource by targeting extensions to the deposit (as
outlined in Figure 2) and by identifying new areas of iron enrichment on BIF ridges that lie parallel to, and along
strike from the resource.
The deposit has several characteristics that are favourable for mining including low levels of impurities, a thin layer
of overburden (0-26m) and minimal groundwater. The majority of the deposit lies above the groundwater table.
The Company is examining all avenues for the development of the resource.
Warwick Resources’ Managing Director Bruce McQuitty said that the initial 11.7 Mt inferred resource at Jimblebar
Range was an important milestone for shareholders.
“Jimblebar Range is the first resource to emerge from the Company’s strong portfolio of iron ore projects. We will
assess potential development options for the deposit while aggressively exploring our other iron ore targets with a
view to growing our resource base” Mr McQuitty said.
1 This estimate is classified and reported in a manner compliant with the JORC code and guidelines (JORC, 2004).
2
The resource estimate was prepared by Chris De-Vitry1 who is a full time employee of Quantitative Group (QG).
QG are an internationally recognised, independent consultancy group specialising in resource evaluation. Chris
De-Vitry acts as the competent person for the resource estimate while Bruce McQuitty2 acts as the competent
person in respect of the geological interpretation and data quality on which the estimate is based. Details of the
estimation methodology are contained in Annexure 1.
Resources were estimated from the results of 52 RC drill holes for a total of 3,651m. The drilling pattern is
approximately 100m x 30m. The collar locations of the drill holes are shown in Figure 2.
A further 13 RC drill holes have been planned to test potential extensions to the mineralisation at Jimblebar Range.
This drilling is scheduled for October. In addition, core from two recently completed diamond drill holes will be cut
and submitted for assay.
The Company expects to receive assay results from a further two RC drill holes at Jimblebar Range and from
Phase 2 RC drilling at Caramulla South in the near future. Results will be released to the market as soon as they
come to hand.
For further information, please contact:
Warrick Hazeldine Bruce McQuitty
Purple Communications Warwick Resources Limited
Phone: 08 9485 1254 / Mobile: 0417 944 616 Phone: 08 9481 8181 / Mobile: 0409 929 121
Email: [email protected] Email: [email protected]
Website: www.warwickresources.com.au
Figure 1: Location of Warwick Resources’ iron ore projects near Jimblebar
3
Figure 2: Modelled resource shells superimposed on topography, highlighting exploration targets
Figure 3: Jimblebar Range Cross-Section A’-A’’, showing large zone of >60% Fe grade at depth
4
About Warwick Resources Limited
Warwick Resources (ASX:WRK) is an emerging iron ore explorer with a diverse asset portfolio near Newman in the
Pilbara region of Western Australia which is host to world class iron ore mines. The Company’s projects have a
combined area of 1,700km². Since listing on ASX in February 2007, the Company has rapidly identified significant
iron ore targets on its existing tenure and has recently acquired further iron ore prospective ground. Through its
relationship with Peak Drilling, the company has access to drill rigs to aggressively explore its projects. In April
2008, the Company welcomed Atlas Iron Ltd (ASX:AGO) as a cornerstone investor with a 19.9% stake and is
looking forward to working with Atlas to deliver a significant iron ore resource in the region for the benefit of the
shareholders in both companies.
Warwick’s iron ore projects near Newman are:
Jimblebar Range contains an Inferred Mineral Resource of 11.7Mt @ 57.6% Fe, with low levels of impurities
(2.2% Al2O3, 0.06% P). The deposit consists of two zones of haematite-goethite mineralisation which extend from
near surface to over 70m depth. The deposit is located only 8km from BHP Billiton’s large Jimblebar iron ore mine
and railway.
Caramulla South comprises an east-west striking strip of Marra Mamba Formation, up to 180m wide and 4km
long, near the northern margin of the exploration licence. Drilling to date has returned significant intersections,
including: 36m @ 57.73% Fe from 2m depth, 22m @ 59.29% Fe from 4m depth, 21m @ 56.3% Fe from 15m depth
and 11m @ 59.2% Fe from 9m depth.
Woggaginna has extensive areas of surficial iron enrichment, developed over banded iron formation confirmed by
detailed mapping and sampling. Grades up to 63.0% Fe and low contaminants indicate DSO potential.
Jimblebar CID - a 3km long mesa from 75m to 150m wide capped by pisolitic iron mineralisation. An initial drill
traverse completed across the CID demonstrated that the channel contains up to 7m of iron-rich pisolite grading to
57% Fe. Phosphorous levels are very low, ranging from 0.020% to 0.025%.
Ten Mile CID is a recently identified channel iron target over 3km in length and up to 400m wide, with potential for
further mineralisation beneath shallow cover. Initial rock chip sampling returned grades up to 58.5% Fe.
Grassroots Iron Targets – Areas of surficial iron enrichment, developed over banded iron formation, have been
mapped at Black Hills. Multiple targets for channel iron mineralisation have been identified on the Company’s
tenements.
1 Mr Chris De-Vitry is a member and registered practicing geologist of the Australian Institute of Geoscientists (AIG). Mr De-Vitry has sufficient
experience in the estimation of iron ore deposits to act as the competent person for this estimate as defined in the 2004 Edition of the
“Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr De-Vitry consents to the inclusion in this report of the Jimblebar
Range resource estimate.
2 Mr Bruce McQuitty is a member of the Australian Institute of Geoscientists. Mr McQuitty is a full-time employee of the Company and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr McQuitty consents to the inclusion in this report of the matters based on his information in the form
and context in which it appears.
8 September 2008
Warwick Resources
Level 4
50 Colin St
West Perth WA 6005
Attention: Mr Bruce McQuitty
Dear Sir
JIMBLEBAR RANGE PROJECT
The mineral resource estimate of the Jimblebar Range project as of the 1st of September 2008
is presented in the attached table (Table 1). Also provided in attachments to this letter is a
summary of key technical points about the estimate prepared.
This estimate was prepared by Mr Chris De-Vitry who is a member and registered practicing
geologist of the Australian Institute of Geoscientists (AIG). Mr De-Vitry is a full time
employee of Quantitative Group1 (QG) and has sufficient experience in iron ore to act as the
competent person for this estimate as defined in the 2004 Edition of the “Australian Code for
Reporting of Mineral Resources and Ore Reserves”. Mr De-Vitry consents to the inclusion in
this report of the Jimblebar Range resource estimate.
Yours sincerely,
Chris De-Vitry
Principal Consultant
Quantitative Group
1 Quantitative Geoscience Pty Ltd. and Quantitative Group Pty Ltd. both trading as ‘Quantitative Group’ and ‘QG’.
Tonnes Fe% SiO2% Al2O3% P% S% LOI% CaFe%
11,700,000 57.6 7.0 2.2 0.06 0.04 7.7 62.4
Table 1. Jimblebar Range Inferred resource estimate at a 50% Fe lower cut off.
• A 50% Fe grade envelope was used to model the mineralisation. The validity of this
grade envelope was confirmed by QG using a variety of measures including using
statistical analysis and by critically examining the geological interpretation.
• The 50% grade envelope was extrapolated up to 50m on cross section and up to 150m
along strike beyond the nearest hole.
• Detailed mapping and a digital terrain model with quoted accuracy of 1m were also
used to constrain the mineralisation model.
• A specific gravity (SG) of 2.47 was used to estimate the tonnage - this figure
represents the average dry SG of 8 samples of HQ core obtained from a recently
completed diamond drill hole (WRKDD04) within the mineralisation.
• Within the 50% Fe grade envelope, univariate analysis, multivariate analysis and
experimental variography were performed. The tonnes and grades are reported above a
50% cut off.
• Estimation was via ordinary kriging and the kriging search employed (or
‘neighbourhood’) was optimised using Quantitative Kriging Neighbourhood Analysis.
Visual examination of the kriging weights and search neighbourhood for selected
blocks was also performed in 3D and indicated that the kriging performed as expected.
• The estimate was validated by QG in the following ways:
o A visual comparison of drillhole assays (Fe, P, SiO2, Al2O3, LOI and S) to
blocks was made on every cross-section.
o Block model volumes were cross-checked against wireframe volumes.
o Kriged grades for every variable were compared to clustered and declustered
composites.
o The degree of smoothing of the kriged estimate was assessed via global grade
tonnage curves using the Discrete Gaussian Change of Support.
o The reported tonnes and grades of the kriged model were calculated using two
software packages to insure that no errors occurred.