JIGALONG IRON TARGETS · Recent gravity survey identifies targets for Iron Ore mineralisation
Hannans Reward Ltd (ASX: HNR) has recently received preliminary results for a ground-based gravity survey completed during December 2007 at the Jigalong Project. The survey successfully identified gravity highs that may represent iron ore mineralisation over a strike length of approximately 9km kilometers, remaining open to the south east. Please refer to the attached map which highlights the Hannans gravity anomalies and subsequent iron targets. The gravity survey was designed to delineate the presence of dense iron mineralisation within the prospective Marra Mamba Formation which is interpreted to extend into the Jigalong Project tenements. Importantly, this Formation outcrops immediately west of the Hannans’ tenement boundary within ground owned by FerrAus Ltd (“FRS”) where grades of +60% iron have been intersected in recent RC drilling (refer FRS ASX release dated 17 December 2007). FRS has also delineated an iron resource at its Robertson Range Project located directly south of Hannans’ tenements. Early geophysical modeling by Southern Geoscience Consultants (www.sgc.com.au) has indicated the presence of several ‘dense bodies’ of interest for potential iron mineralisation. These gravity anomalies sit in a stratigraphically (i.e. geologically) favourable position with initial interpretation supporting the proposition that it is indeed the Marra Mamba Formation. A first phase reverse circulation (RC) drill programme of approximately 3,000m has been designed to confirm both the presence of the Marra Mamba Formation and importantly iron mineralisation. Preparations are now underway to complete heritage surveys to allow drill testing of the gravity targets at the earliest possible opportunity during the next field season. By way of background the Jigalong Project is the subject of a Memorandum of Understanding between Hannans Reward Ltd and Jigalong Community Inc dated 20 October 2003. A substantive agreement covering the terms in the MOU has not yet been signed by either party. The principal terms of the MOU are that it is an equal joint venture with both parties required to contribute to exploration expenditure or be subject to dilution. The Jigalong Project tenements are registered in the name of Errawarra Pty Ltd, currently a wholly owned subsidiary of Hannans Reward Ltd.
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