Maiden 140 Million Tonne Magnetite JORC Resource at Ruoutevare...

Maiden 140 Million Tonne Magnetite JORC Resource at
Ruoutevare Project, Sweden

�� Ruoutevare contains 140Mt Inferred JORC Mineral Resource at 39.1% iron, 5.7% titanium and
0.2% vanadium
�� WAG earning 50% of Ruoutevare
�� Major drilling program expected to begin November 08 with excellent potential to significantly
increase the resource
�� Nearby Kallak Magnetite Project has an exploration target of iron mineralisation ranging from 88Mt
to 92Mt at a grade range of 35% – 42% iron
WAG Limited (ASX: WAG) is pleased to announce the completion of a maiden Mineral Resource estimate
compliant with the JORC Code reporting standards for the Ruoutevare Magnetite Project in Norrbotten
County, northern Sweden.
This follows the signing of the Ruoutevare Farmin & Joint Venture Agreement between WAG and AIM‐listed
Beowulf Mining plc (Beowulf) whereby WAG, subject to Shareholder approval, will earn 50% of the project
by spending AUD$1,000,000 on a 3,000 – 5,000 metre delineation drilling program and metallurgical test
work.
The Ruoutevare Project is situated 150km southwest of the world’s second largest underground mine – the
2.3 billion tonne Kiruna iron ore mine. Ruoutevare is located 180km by road from the nearest potential
road‐rail reloading site.
Completed by geological consultants Runge Limited, the Inferred Mineral Resource estimate of 140 million
tonnes (Mt) grading 39.1% iron (Fe), 5.7% titanium (Ti) and 0.2% vanadium (V) (cut‐off grade of 30% Fe)
exceeds WAG’s initial estimate of between 116–123Mt of mineralisation.
The Ruoutevare Resource is based principally on 32 diamond core drill holes totalling 6,223m, drilled by the
Geological Survey of Sweden (SGU) in the early 1970s. SGU estimated 116Mt at 38.2% Fe, 5.6% Ti and 0.17%
V. Detailed ground magnetic and metallurgical test work was made available to Runge, together with
geological mapping of the deposit completed in 2006. A comprehensive review of the drill data and
geophysical information, together with the findings of the 2006 geological mapping report indicate that
mineralisation extends beyond the area drilled by SGU.
In addition to the 140Mt Inferred Resource at the Ruoutevare Project, the nearby Kallak Magnetite Project,
based on exploration by SGU consisting of three diamond core drill holes and geophysical surveys, has
estimated target iron mineralisation of 88 – 92Mt at 35 – 42% Fe. WAG has entered into a second Farmin
Agreement with Beowulf whereby, subject to Shareholder approval, WAG will earn 50% of Kallak by
completing drilling, metallurgical test work and a magnetic survey program. The potential quantity and
grades for Kallak are conceptual in nature. There has been insufficient exploration to define a Mineral
Resource compliant with the JORC Code and it is uncertain if further exploration will result in the
determination of a Mineral Resource.
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Drilling Program and Metallurgical Review
A diamond drilling program is expected to begin in November 2008 to target lateral extensions of the known
mineralisation. The program is aimed at significantly increasing resources at Ruoutevare and upgrading the
existing and subsequently identified Resource into JORC Code Indicated and Measured categories.
Detailed metallurgical test work of the Ruoutevare deposit was first carried out by the Swedish governmentowned
iron ore mining company LKAB with subsequent work by Finnish steel company Rautaruukki. The
reports have been translated into English and submitted to metallurgical consultants for review. Following
the review a metallurgical test work program will be developed and incorporated into the drilling program.
Ruoutevare Magnetite Project Overview
The Ruoutevare Magnetite Project consists of one Exploration Permit covering a total area of 850 hectares
located approximately 1,100km north of Stockholm in Norrbotten County, 13km north west of the small
village of Kvikkjokk (Figure 1). The 2.3 billion tonne Kiruna iron ore mine, the world’s second largest
underground mine, is located approximately 150km northeast and the Malmberget iron ore mine is located
120km to the east.
Figure 1. Project Location Map
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LKAB own and operate both the Kiruna and Malmberget iron ore mines as well as the Luleå‐Malmberget‐
Kiruna‐Narvik railway used to transport the iron concentrates and pellets. LKAB also own storage and ship
loading facilities at the Luleå port (Baltic Sea) and the Narvik Port (Norwegian Sea) in Norway.
The Ruoutevare project is approximately 180km by road from the nearest potential road‐rail reloading site
on the Luleå‐Malmberget‐Kiruna‐Narvik railway route. Power accessibility and relative cost is excellent in
Sweden, with the Seitevare hydroelectric plant located 75km by road from the Ruoutevare Project.
Ruoutevare Geology and JORC Inferred Resource Estimate
The Ruoutevare magnetite deposit is an out‐cropping, flat‐lying to gently dipping magnetite rich layer about
150m thick within an anorthositic gabbro. The magnetite ranges from massive to disseminated and is
associated with ilmenite.
The magnetite mineralisation consists of four lenticular pods of mineralisation that are interpreted to be the
result of magmatic layering within the intrusive complex. The most significant mineralised body is
approximately 1,500m long and 200m to 300m wide.
There appears to be good potential to substantially increase the resource by drilling extensions to the
existing resource and by testing other magnetite bearing zones in the vicinity of the deposit.
The resource was estimated in a standard block model using Ordinary Kriging interpolation. The interpolation
was constrained by resource outlines based on mineralisation envelopes prepared using a nominal 30% Fe
cut‐off grade.
A rotated Surpac block model was created to encompass the full extent of the Ruoutevare deposit (Figure 2).
The block model used a primary block size of 100m NS by 50m EW by 8m vertical with sub‐cells of 25m by
12.5m by 2m. The parent block size was selected on the basis of 50% of the average drill hole spacing within
the main mineralised zones.
Figure 2. 3D Oblique View (South) of Wireframes Showing Ruoutevare Magnetite Mineralisation and
Drill Holes
Ruoutevare Deposit
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Mining in Sweden
Sweden is by far the largest iron ore (mostly magnetite) producer in the EU, and it is also among the leading
producers of base and precious metals. Sweden provides modern and efficient infrastructure including wellestablished
roads, rail and water supplies. Swedish iron ore is significantly cheaper for European consumers
due to lower shipping costs compared to southern hemisphere iron ore imports.
The many benefits of operating in Sweden include well developed infrastructure, a highly skilled mining and
exploration workforce, extremely low sovereign risk and a very strong mining culture built up over many
decades. Importantly for magnetite processing, power accessibility in northern Sweden is excellent and
power costs are generally the lowest in Europe.
In recent times considerable exploration activity has been carried out by large and small Swedish and foreign
exploration companies. Iron ore exploration and development activity in particular has increased with at
least two former iron ore mines (Grängesberg Mine and Dannemora Mine) planning on re‐opening in the
near future. Additionally, numerous companies have advanced iron ore development projects well
underway, most notably the Stora Sahaavara project south east of Kiruna.
Enquiries:
James Allchurch
Director
WAG Limited
+61 (0)419 903 011
[email protected]
Competent Persons Statement
The information in this report which relates to Mineral Resources is based on information compiled by Mr Paul
Payne, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy, and an independent
consultant to the Company. Mr Payne is Principal Geologist with Runge Limited and has over 23 years of
mining and evaluation experience in a variety of mineral deposit styles including iron ore mineralisation. Mr
Payne has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is 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 Payne consents to inclusion in the report of the matters based on his information in the form
and context in which it appears.
The information in this report which relates to the Kallak Magnetite Project is based on information compiled
by Mr Allen J Maynard, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy, a
Member of the Australian Institute of Geoscientists and independent consultant to the Company. Mr Maynard
is principal of Al Maynard & Associates and has over 30 years of exploration and mining experience in a
variety of mineral deposit styles including iron ore mineralisation. Mr Maynard has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
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 Maynard consents to inclusion in
the report of the matters based on his information in the form and context in which it appears.