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Equatorial Resources (ASX:EQX) – Good Drill Results from Mayoko-Moussondji Project

• The company announced results from a drill programme designed to target hematite mineralization at the Makengui Prospect at their flagship Mayoko-Moussondji project in the Republic of Congo.

• The results are very encouraging and confirm the potential for DSO along 2.5 km of the 12 km long strike at the Makengui Prospect.

• Significant intersections from the current batch of assay results include:

Direct Shipping Ore (“DSO”):

12m at 61% Fe from surface in MMKDD020;

13m at 58% Fe from surface in MMKDD021;

25m at 61% Fe from 31m in MMKRC023;

Enriched Hematite (“pDSO”):

20m at 55% Fe from 2m in MMKRC001;

14m at 54% Fe from surface in MMKRC002;

38m at 46% Fe from 12m in MMKDD021;

Magnetite Banded Iron Formation:

241m at 32% Fe from 128m in MMKDD012

• The company has completed 15,700 metres of drilling at the Makengui drilling 111 holes (8,400m of diamond drilling in 47 holes and 7,300 metres of RC in 64 holes).

• Makengui is one of the five main prospects at the Mayoko-Moussondji that totals over 46 km of identified magnetic anomalies with potential for iron mineralisation.

• Mineralisation in the area drilled has been found to vary in width from 20m to 200m and remains open to the east and west of the strike.

• Infill resource drilling has commenced at the Makengui Prospect targeting areas of identified high grade hematite.

• The company is revising its contractual terms on drilling to include an additional RC rig by April 2012 which will mean three rigs will be operating at the project – 2 RC and 1 DC.

• They have also increased the metres of RC drilling from 20,000 to 50,000 metres.

• The company is currently conducting metallurgical testwork to demonstrate the potential for DSO, beneficiated DSO and Magnetite BIF.

• A maiden resource estimate is expected to be completed in the second half of 2012.

• Makengui is located 500 metres from an operational railway line that leads to the port at Pointe-Noire.

Conclusion: These positive results augur well for the maiden resource at the Mayoko-Moussondji project – we are particularly pleased to see the high DSO grades which confirmed in a JORC resource puts this project in a similar category to the neighbouring African Iron project recently taken over by Exxaro. We continue to recommend the shares which should benefit from the presence of Exxaro which will be developing and taking forward the African Iron project and also testing out the infrastructure.

* A Fairfax analyst recently visited the Equatorial and Zanaga iron ore projects in the Republic of the Congo



http://www.proactiveinvestors.co.uk/columns/fairfax-i-s/8679/fairfax-marketing-report-including-firestone-diamonds-and-equatorial-resources-8679.html