iron ore drilling report 4

Target Area No of Holes Metres Drilled
Area A 0 0
Area B 0 0
Area C 0 0
Area D 13 491
Area E 40 2,839
Total 53 3,330
Number of samples sent for assay 1,611
Number of assays received 238
Number of assay results awaited 1,373
Note: These numbers include previously reported numbers.
List of new iron ore intersections in week Table 2
List of received assayed intersections in week Table 3
HAMERSLEY TENEMENT E47/882 Flinders Mines Limited (FMS) 100%
• Excellent assay results from Area E confirm mineralised thicknesses 75% in excess of initial
Exploration Target estimates.
• Area of known Channel Iron Deposit (CID) mineralisation extended on the northern margin of Area E.
• Latest drilling intersections from Area D located CID mineralisation at shallow depths with good
thicknesses.
• Area D visual intersections average 14.0 metres thick and continue to exceed the initial Exploration
Target estimate of 8.0 metres.
• A third rig has been contracted to commence drilling early in October 2008 – this will increase the
drilling rate and expedite Inferred Resource estimations.
ASX Announcement • 25 september 2008
WEEKLY
IRON ORE
DRILLING REPORT – No. 4
HAMERSLEY PROJECT, WA
HIGHLIGHTS
Hamersley
WESTERN
AUSTRALIA
This announcement by FMS is the fourth in a series of weekly announcements to
describe the drilling progress at its Hamersley Project in Western Australia. It is
anticipated that weekly announcements will continue until inferred resources are
announced at the end of the 2008 calendar year. The announcements will take the
form of a template to ensure the information is concise and consistent.
Location
Flinders Mines Limited’s (ASX: “FMS”) Hamersley Iron
Ore Project in WA comprises five target areas: Areas A,
B, C, D and E (see Figure 1).
High Court Ruling
Fortescue Metals Group Ltd (FMG) reported in a Media
Release yesterday that the High Court had ruled that BHP
Billiton’s Newman and Goldsworthy rail track services are
not excluded from coverage under Part 111A of the Trade
Practices Act. This should bring third party access to
Pilbara rail services a step closer for companies such as
FMS where a railway is located only 20 km from current
activities and another is planned.
Summary Update
Drilling is now proceeding with two RC drill rigs on a regular
basis. Each rig is completing about one hole per day and
together about 14 holes for 600 to 750 metres per week. A
third rig is due to commence in early October. The current
Drilling Statistics
Table 1 Completed drillholes in each area.
2 • FLINDERS MINES LTD • ASX Announcement
Figure 1 Hamersley E47/882 showing the location of Target Areas.
Drilling Intersections
Table 2: List of iron ore intersections during the week (assays awaited).
Hole ID Visual estimate Total Depth
From
(m)
To
(m)
Interval
(m)
(m)
HRC208 21 30 9 52
HRC210 None identified 32
HRC211 None identified 36
HRC212 18 30 12 42
HRC213 23 26 3 26
HRC214 None identified 12
HRC42 50 72 22 104
HRC43 56 62 6 96
HRC44 41 47 6 60
HRC45 54 73 19 90
HRC46 54 62 8 90
HRC47 58 68 10 90
Table 3: List of RC drillhole intersections (assays received).
Hole ID From
(m)
To
(m)
Interval
(m)
Fe
%
Al2O3
%
SiO2
%
P
%
LOI
%
HRC23 8 24 16 56.7 2.4 7.9 0.110 7.7
HRC24 4 16 12 54.5 3.9 6.8 0.083 10.6
HRC38 16 32 16 54.1 5.1 13.4 0.045 3.1
HRC39 Subgrade
HRC40 Subgrade
HRC41 Subgrade
NB: These intersections are based on an Fe cut-off grade of 50% and a maximum internal dilution of 2m.
Analysis via XRF fusion at SGS Laboratories.
LOI - Loss of ignition.
drilling program is expected to continue
until early December.
Results to date have indicated broad
zones of flat-lying CID mineralisation
at variable depths – from near the
surface in valley headwater areas – to
about 50 metres further downstream.
Locations are approximately as
predicted. In contrast, ore thicknesses
are greater than originally estimated,
with both Areas E and D currently
averaging about 14 metres thick
compared to an original estimate of
8 metres. This represents a 75%
increase in thickness.
117º25'
117º30'
-22º10'
E47/882
AREA A
AREA B
AREA C
AREA D
AREA E
0 2 km
Interpreted Channel Iron Deposits (CID)
Interpreted Detrital Iron Deposits (DID)
Modern Colluvium
Late Tertiary Sand and Gravel
Brockman Iron Formation
Only limited numbers of assays have
been returned to date, for nine of
53 holes drilled. The current batch
of assays was received yesterday
afternoon. This is due to the normal
laboratory assay turnaround time being
about 4 weeks from receipt of samples.
From those assays received so far, FMS’
average iron grade is 55 % iron which
compares favourably with average
grades from the nearby FMG’s Serenity
and Rio Tinto’s Caliwingina resources.
Drill cuttings from HRC23
3 • FLINDERS MINES LTD • ASX Announcement
Figure 2 Proposed and completed RC drilling in Area E and Area D.
HRC201
HRC203
HRC204
HRC205
HRC206
HRC207
HRC208
HRC213
HRC214
HRC210
HRC211
HRC212
HRC28
HRC33
HRC36
HRC37
HRC38
HRC39
HRC41
HRC40
HRC34
HRC35
HRC27
HRC26
HRC25
HRC20
HRC21
HRC22
HRC23
HRC24
HRC19
HRC18
HRC16
HRC17
HRC11
HRC12
HRC13
HRC14
HRC15
HRC8
HRC10
HRC4
HWB1
HRC42
HRC3
HRC2
Area E
RC drillhole completed (awaiting assays)
RC drillhole completed <50% Fe intersected
RC drillhole completed >50% Fe intersected
Proposed RC drillhole
Hole not drilled (shallow bedrock)
Interpreted CID mineralisation
Interpreted CID mineralisation
(outside exploration licence)
Exploration licence
Access track
Exploration camp
0 1 km
E47/882
HRC202
Area D
HRC47
HRC46
HRC45
HRC44
HRC43
22° 10’
117° 30’
First pass drilling is complete in area
E and 13 holes have been drilled in
Area D. Together with outcropping
CID mineralisation at the waterfall in
Area A, CID mineralisation has now
been confirmed in 3 of the 5 areas
targeted. In several areas, the hanging
wall and footwall of the main CID
intersections contain sub grade ore with
over 40% iron and provide an excellent
opportunity to supplement CID with
beneficiated ore.
All drilling approvals have been received
and archeological surveys carried out
for all areas except Area A, which is
underway. Drill site access earthworks
have also been carried out. Camp
facilities have been completed and
the geophysical hole logging truck
is operating well. A program for the
initial evaluation of E47/1560 has been
submitted to the WA Department of
Industry and Resources.
Drilling Activity
Excellent d • rilling results have been
returned for six drill holes in Area E
(see Table 3). Two of the holes
(HRC23 & 24) are located on the
northern margin of the known CID
mineralisation. The intersections are
less than 10 metres deep and extend
over a thickness of greater than 12
metres. The geological logging did
not anticipate that HRC24 would
return greater than 50% iron, and
consequently this result extends the
known area of CID (see Figure 2).
The third intersection (HRC38)
is located in the far western zone
of Area E and confirms that the
mineralisation extends across almost
the entire length of the channel.
4 • FLINDERS MINES LTD • ASX Announcement
Dr Kevin Wills
Managing Director
25 September 2008
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.
Dr Wills is an employee of Flinders Mines Limited. He has more than five years relevant experience in the style
of mineralisation and types of deposit under consideration and consents to inclusion of the information in this
report in the form and context in which it appears. He qualifies as a Competent Person as defined in the 2004
Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”.
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]
Drilling h • as continued in Area D with
another seven holes completed on
the first and third lines. The zone of
CID mineralisation has been extended
to at least 1.2 km across the main
channel. The additional mineralised
intersections along this line continue
to be relatively shallow (less than
or equal to 21m) and exceed the
Exploration Target thickness estimate
of 8.0m.
• Infill drilling has continued in Area E
until earthworks in Area C are
sufficiently advanced to allow the drill
rig to be mobilised into Area C. Three
of these holes are redrilled holes
completed by the original drilling
contractor. The existing holes were
drilled again because the drill sample
was considered to be inappropriate
for a JORC compliant resource
estimate. It is anticipated that the
assay results from this redrilling
may result in an upgrade in the iron
grade and a lowering of the alumina
concentration.
• A third drill rig has been contracted
to start in early October 2008. This
rig has been sourced from one of the
existing drilling contractors currently
onsite to maintain a satisfactory
level of drilling quality and health
and safety standards. This rig has
been contracted to enable the drilling
rate to be increased with the aim
of meeting the Inferred Resource
status milestones on all five areas.
The initial Inferred Resources are
expected to be announced at the
FMS annual general meeting in late
November, with an update provided
prior to the end of 2008 and all
completed and signed off Inferred
Resources by the end of January
2009.
• Drill planning has been completed
on E57/1560 (FMS 100%) and
a programme of works has been
submitted to the Department of
Industry and Resources.
Approvals
According to the schedule, the
archaeological clearance for areas A, B
and C commenced on 19th September
2008. The clearance for Area B and C
has been completed and earthworks
have been instigated. The drill rig
currently carrying out infill drilling in
Area E will be moved into Area C to
commence drilling as soon as possible.
Tenements
Nothing to report.