8 October 2007Companies Announcement OfficeASX Limited20 Bridge...

8 October 2007
Companies Announcement Office
ASX Limited
20 Bridge St.
Sydney NSW 2000.
UPDATED MINERAL RESOURCES STATEMENT GABANINTHA
Mineral Resources Statement
Yellow Rock Resources completed a 42 hole 3876 m RC program in July 2007 and have now received the final assays to 1264 samples. This data together with previous exploration has allowed a block model to be generated. This was done for both resource calculation and guidance for future exploration in the area.


Schwann Consulting has completed an initial resource model using all geological and assay data available as at the 3rd of October 2007 and prepared a mineral resource estimate. The resource estimate was classified in accordance with the Australasian Code for the Reporting of Identified Mineral Resources and Ore Reserves (JORC Code 2004).


The Magnetite - Vanadiferous Ilmenite deposit within the Company’s Gabbanintha Project has a strike length of 12 km of which only 9.5km is tested (See attached plan) with a drilled vertical depth from surface down to 105m. The RC drilling was done in three stages by three different companies, and the last two comprise 80% of the drilling used. Based on these criteria Schwann Consulting estimated the deposit contains an
Indicated Resource of 92.5Mt grading 0.81 V2O5 and 9.81% TiO2 with 51.2% Fe2O3.


No down dip or along strike Inferred Resources were calculated as they will be investigated in the next phase of drilling. (See Addendum).
The initial block model defines a robust high grade deposit averaging 18m true thickness and with a strike length of 9.5 km.

This world class orebody is basically a gently curved thick layer dipping at 40º to 60º SW and striking NW SE. There is also a largely untested detrital bed to the SW of the main ore zone over a wide area where the orebody does not outcrop.


Resource modelling has defined some areas which will be infill drilled to increase both tonnes and resource classification so that an Ore Reserve can be accurately defined for a feasibility study in the near future. This will involve drilling to the south as well as down dip and to produce variography determinations. The resource can be increased by an order of magnitude with this program which is scheduled for the end of the year. Also planned is the reappraisal of the leases using a worming technique on the Company low level aeromagnetics to look for buried primary and detrital deposits.
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Plan showing drillholes and geology of the Gabbanintha Vanadium Project
Notes. Estimation Method Inverse Distance Squared Weighted Block Model. (IDW2)
• A cut off grade of 0.4% V205 assay grade used for Wire Framing.
• Geology was used directly but the ore zone is strataform.
• Extrapolation limited to 30m (average hole spacing) up or down dip.
• Search ellipse oriented to 310 dipping 40 to 220.
• Search distances 200m strike dir, 100m dip dir, 66m across dip dir.
• Flat alluvial and dipping primary treated the same.
• Sample intervals assessed to derive 5m composite lengths. This was due to the original 6 holes being composited.
• Block model oriented to 318degrees. Blocks 100m x 30m x 5m (sub-celled to 100m, 7.5, 2.5)
• No top cut used
• ISBD assigned according to V205 block model grade and based on diamond core testwork. V2O5<0.5 (2.5t/m3), 0.5-0.7 (3.5t/m3), >0.7 (4.2t/m3).

The information in this statement of Mineral Resources is based on information compiled by Peter Schwann who is a Fellow of the Australasian Institute of Mining and Metallurgy and Chartered Professional (Geology) and has sufficient relevant experience to qualify as a Competent Person as defined in the JORC Code (2004).


Peter Schwann consents to the inclusion of this information in the form and context in which it appears.
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