significant increase to resource base in murray ba

Broken Hill
138 Pinnacles Road
Broken Hill NSW 2880
PO Box 444
Broken Hill NSW 2880
TEL: (08) 8080 0800
FAX: (08) 8080 0888
Bunbury
Koombana Drive
North Shore
Bunbury WA 6230
PO Box 133
Bunbury WA 6231
TEL: (08) 9721 0200
FAX: (08) 9791 1249
Mildura
4463 Benetook Ave
Mildura VIC 3501
PO Box 4032
Mildura VIC 3502
TEL: (03) 5025 7575
FAX: (03) 5025 7105
Perth
Level 15, QV.1 Building
250 St George’s Terrace
Perth WA 6000
TEL: (08) 9212 6000
FAX: (08) 9486 4711
Brisbane Head Office
PO Box 15164
City East Qld 4002
TEL: (07) 3210 7900
FAX: (07) 3210 7999
www.bemax.com.au
ASX ANNOUNCEMENT
Significant Increase to Resource Base in Murray Basin
Bemax is pleased to announce an increase in its Broken Hill Region
resources of over 25%.
This significant upgrade takes the Bemax resource base in the Broken Hill
Region from 67.5 million tonnes (Mt) of contained heavy mineral to 85.2Mt
and a Company wide total of over 98Mt.
All additional resources have high grade mineral assemblages with zircon
ranging from 8-13% of the heavy mineral suite, rutile 12-19% and total
ilmenite and leucoxene content 40-55%.
Total in ground zircon in the region now exceeds 8.5Mt and rutile 13.5Mt. At
today’s prices this represents over US$13 billion of product.
The major resource upgrade has resulted from:
�� The completion of a full scale drilling and assay campaign on the
Massidon Prospect resulting in the delineation of a deposit containing
10.7Mt of contained heavy mineral. This single deposit is almost
double the size of the operating Ginkgo Mine.
�� Discovery of two new prospects, Coliban and Wakool, in the Willandra
East Tenement, increasing this tenement by 3.5Mt of contained heavy
mineral from, 12.7Mt to 16.2Mt.
�� Discovery of the Barda Prospect in the Willandra West Tenement,
increasing this tenement by 1.9Mt of contained heavy mineral from
9.4Mt to 11.3Mt.
�� Upgrade of the Minervah Deposit, which lies between the Snapper
Mine development and the Ginkgo Mine, by 2Mt of contained heavy
mineral.
Bemax’s core development program is focused on ensuring the Company builds on and
strengthens its position as a major zircon and titanium feedstock producer whilst
maintaining flexibility in production to enable the Company to meet changes in the market
place and satisfy customer demands.
Managing Director Tony Shirfan said: “A resource upgrade of this magnitude, in 2006, in
addition to commissioning the Ginkgo Mine and being well advanced in the development
of the Snapper Mine, is a remarkable achievement.”
Identification of the deposit to become the Company’s third mine in the Broken Hill region
will now commence as the second mine, Snapper, moves into the advanced approvals
stages. In addition to the new significant Massidon deposit the Company has several other
advanced deposits of the size, grade and location to consider to maximise leverage from
existing and ongoing infrastructure developments.
Yours faithfully
Lynette Jones
Company Secretary
www.bemax.com.au Email: [email protected]
Phone: (61 – 7) 3210 7900
Facsimile: (61 – 7) 3012 7999
Attachments: Resource Information
Broken Hill Region Deposits Table
Map of Broken Hill Region Deposits
Resource Information
Massidon Deposit
The Massidon deposit is a large tonnage low-grade, medium-grained mineral sand deposit.
It is interpreted as an offshore or lower beach face marine deposit. The deposits are
geologically consistent over large areas and can be evaluated by wide spaced drilling.
20 holes, including three twinned holes, were drilled in the recent programme for a total of
564 metres to complement previous drilling campaigns. The holes were designed to test
the main core of mineralisation and by drilling them close to previously drilled holes assess
the value of the previous drilling results.
There was a very good correlation between grade and thickness of intersections between
recent and previous drilling. This provided confidence in using results from the previous
drilling in the outer areas of the deposit not recently drilled.
Results
1% Cut-Off
Indicated Resource 229.5Mt @ 2.66% HM
Inferred Resource 200.4Mt @ 2.29% HM
Total 429.9Mt @ 2.49% HM (10.7Mt of contained HM)
(Indicated and Inferred)
On a 1% cut-off a resource of 229.5Mt @ 2.66% heavy mineral (HM) has been defined in
the immediate vicinity of the latest drilling. Based on the long range continuity of this style
of deposit the resource has been given an indicated resource status.
A further resource of 200.4 Mt @ 2.29% HM is defined on a 1% cut-off around the above
resource based on previous drilling. Because this part of the resource is based on previous
drilling it has only been given an inferred status.
At the 1% cut-off this defines a total resource of 429.9 Mt @ 2.49% HM giving 10.7Mt of
contained HM.
0.5% Cut-Off
The total sand horizon is mineralized and there is a consistent zone of lower grade
mineralization across the top of the deposit. The following results are based on a 0.5%
cut-off.
Indicated Resource 447.1 Mt @ 1.68% HM
Total Resource 647.5Mt @ 1.87% HM (12.1Mt of contained HM)
(Indicated and Inferred)
Mineralogy
Six heavy mineral composites were sent for mineralogical analysis using Value Scan (Qem
Sem) technology. The composites were also analysed by XRF to confirm that Uranium and
Thorium (U+Th) levels are below the 500ppm accepted level. Results are summarized
below.
Deposit Zircon % Rutile % Leucoxene % Total Ilmenties % U+Th
Massidon 7.9 7.4 5.4 44.8 344
Based on these results the resource in total contains almost 1 Mt of contained zircon.
Grain Size
The heavy mineral in the Massidon deposit has a d50 value between 70 and 90 microns.
There is a layering through the deposit with the deeper layer comprising finer grained
mineralisation typically between 63 and 75 microns. The upper mineralisation is corser
grained being typically between 80 and 90 microns. These characteristics are acceptable
for the Company’s existing clients.
Slimes
The average slimes content in the deposit is 12%. Again there is a variation down through
the deposit with the upper material averaging 5% slimes, but the deeper fine grained
material averaging around 18%.
Overburden
The overburden depths are quite variable depending on the topography, within some areas
the heavy mineral body is at the surface and has no overburden. Based on a 1% cut-off the
depth of overburden averages 15.9 metres compared to an average ore thickness 8.4
metres (stripping ratio of 1.88).
However, based on depths to the top of the mineralised horizon using a 0.5% cut-off,
overburden depths average only 8.7 metres compared to ore thicknesses on average of
17.5 metres, a stripping ratio of only 0.5. This level of overburden is significantly less than
the typical 25-35 metres on other deposits in the region.
Willandra East Tenement
Two new prospects, Coliban and Wakool have been discovered in the Willandra East
tenement. Both prospects have been drilled on three lines with Coliban having a calculated
resource based on a 1% cut-off of 52Mt @ 4.0% and Wakool on the same basis 53Mt
@2.9% HM. Both prospects are very low in slimes and contain high grade mineral
assemblages averaging 17% rutile and 12% zircon. With these two new prospects the
Willandra East tenement now contains a total of 16.2 Mt of contained heavy mineral in a
series of deposits including the Campaspe deposit located in 2005. An extensive drill
programme is planned for 2007 to explore lesser drilled areas of the tenement.
Willandra West Tenement
The Barda prospect in the northern part of Willandra West has been drilled on 4 lines
during the year defining a resource based on a 1% cut-off of 46Mt @ 4% HM outlining an
additional 1.8Mt of contained heavy mineral. The Barda prospect also has a high value
mineral assemblage of 19% rutile and 13% zircon. This tenement now contains a total of
11.3Mt of contained heavy mineral. Several of the prospects in the Willandra West
tenement are well advanced and during 2007 will be assessed for future potential mining.
Minervah Deposit
In the Pooncarie area, further drilling on the Minervah deposit, which lies between the
Snapper Deposit and Ginkgo Mine, has extended the resource both north and south. The
resource based on a 1% cut-off has now increased from 35 Mt @ 3.0% HM to 62 Mt @ 5%
HM representing an increase of 2Mt of contained HM. The deposit in fact lies beneath the
present haul road to the Ginkgo Mine. Further drill lines are presently being drilled to test
the extension of Minervah to the north.
The information in this report that relates to Mineral Resources and Ore Reserves is based
on information compiled by Dr Ray Roberts who is a member of the Australian Institute of
Mining and Metallurgy and is a full time employee of the Company. Dr Ray Roberts has
sufficient experience which is relevant to the style of mineralisation and type of deposits
under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the JORC Code. Dr Roberts consents to the
inclusion in the report of the matters based on his information in the form and context in
which it appears. The Mineral Resources are quoted inclusive of any Ore Reserve
estimates.
Massidon
Gallipoli
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40
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70
80
90
DEPOSITS
HM RESOURCES
Prungle
Ginkgo
Snapper
Yabbie
Campaspe
Ouyen
Minervah
Shamrock
Other
BROKEN HILL REGION DEPOSITS
Over 2.5Mt Contained Heavy Mineral
MURRAY BASIN TENEMENTS AND MAJOR PROSPECTS