C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000 P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au ASX ANNOUNCEMENT 4 April 2012 Hamersley Project Exploration Update Key points Heritage surveys at Hamersley Iron Ore project expected to be completed early May followed by mobilisation of camp & drilling to commence immediately after. Drill program to be 5000m of RC and 600m of diamond core, targeting extension of current Resources. Native Title agreement is under negotiation with Eastern Guruma and is progressing well. Mineralogy study underway to determine metallurgical studies to maximise value from extensive high grade CID material & confirm economic potential of detrital overburden. Detailed re-examination of previous drilling confirmed the deposit is open in several directions with potential for significant Resource upgrade. Winmar Resources Limited (ASX:WFE) (Winmar) is pleased to provide the following update on the progress of its 2012 exploration season at the Hamersley Iron project (E47/1617), in the Pilbara region of Western Australia. The Company is undertaking a $2.2 million exploration and development program in 2012 at the Hamersley project, for the period through to the end of September. The works program is designed to expand the project’s Resource base, advance the metallurgical work on the deposit and complete surveys and studies to move the project towards prefeasibility. Winmar advises that its timetable for the commencement of drilling has been impacted by the heavy wet season in northern Western Australia, but the Company does not expect this to have a major impact on its exploration program at the project. Planning for the upcoming drilling campaign at the Hamersley project is well underway. A Heritage Survey is expected to be completed early May. From there, the camp will be mobilised and drilling is scheduled to commence immediately thereafter. Current Resource area 117 holes have been drilled into the resource area. Of these, 54 holes have ended in material with >40% Iron (Fe) content (with 35 of these grading more than 50% Fe, in the deepest sample). For personal use only
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
ASX ANNOUNCEMENT 4 April 2012
Hamersley Project Exploration Update
Key points
Heritage surveys at Hamersley Iron Ore project expected to be completed
early May followed by mobilisation of camp & drilling to commence
immediately after.
Drill program to be 5000m of RC and 600m of diamond core, targeting
extension of current Resources.
Native Title agreement is under negotiation with Eastern Guruma and is
progressing well.
Mineralogy study underway to determine metallurgical studies to maximise
value from extensive high grade CID material & confirm economic potential
of detrital overburden.
Detailed re-examination of previous drilling confirmed the deposit is open in
several directions with potential for significant Resource upgrade.
Winmar Resources Limited (ASX:WFE) (Winmar) is pleased to provide the following update on the progress of its 2012 exploration season at the Hamersley Iron project (E47/1617), in the Pilbara region of Western Australia. The Company is undertaking a $2.2 million exploration and development program in 2012 at the Hamersley project, for the period through to the end of September. The works program is designed to expand the project’s Resource base, advance the metallurgical work on the deposit and complete surveys and studies to move the project towards prefeasibility. Winmar advises that its timetable for the commencement of drilling has been impacted by the heavy wet season in northern Western Australia, but the Company does not expect this to have a major impact on its exploration program at the project. Planning for the upcoming drilling campaign at the Hamersley project is well underway. A Heritage Survey is expected to be completed early May. From there, the camp will be mobilised and drilling is scheduled to commence immediately thereafter. Current Resource area 117 holes have been drilled into the resource area. Of these, 54 holes have ended in material with >40% Iron (Fe) content (with 35 of these grading more than 50% Fe, in the deepest sample).
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
This shows potential increases in resources at depth, through a significant portion of the deposit. Of the 90 holes re-logged in the resource area to date, only 32 have reached Proterozoic basement. 11 holes failed to reach sufficient depth to intersect CID or basement, with 47 ending in CID. There is a significant gravity anomaly in the area and previous drilling has closely followed this anomaly. However, the CID appears to have a more north-northeast trend compared to the northwest gravity trend (See Figure 1). The next phase of drilling is designed to test continuations of the mineralisation in the northeast and southwest of drilling. Figure 1: Holes showing CID thickness in metres, gridded to show trends.
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
Resource Upgrade The current Resource Estimate at the Winmar deposit at the Hamersley Iron Ore project is:
Type
Tonnes Mt
Fe %
Al2O3
% P %
SiO2
% LOI %
CaFe %
Detrital 29.1 47.1 5.6 0.03 23.9 2.6 48.3
Channel 169.3 55.6 4.1 0.04 10.1 5.7 59.0
Bedded 43.2 54.0 4.5 0.05 10.0 7.4 58.3
Total 241.6 54.3 4.3 0.04 11.8 5.6 57.6
July 2011 Inferred Mineral Resource Estimate (COG: 40%Fe Detrital, 52%Fe Channel &
Bedded). CaFe calculated by: (Fe%/(100-LOI%))*100
The Resource estimate was conducted with just over 50% of the assays received from the 2011 drill program and, as a result, the resource model did not extend the full length, breadth and depth of the drill program. Winmar believes that there remains significant upside in the project. There are significant mineralised intercepts in recent drilling outside the current resource, particularly at depth, as many of the holes excluded from the Resource were deeper than the model (See Figure 2). The extension of the deposit at depth and laterally is considered likely, with many intersections of greater than 50 metres on the edges of the current drilling. A Resource upgrade will be completed following this year’s drilling, once all assay information is received. The current Exploration target for the deposit is 350-400Mt @ 54-56%Fe (57-60% CaFe). This is based on the extensions within the drilling completed in 2011 and the fact that the deposit is still open in all directions. Mineralogy and Metallurgy A detailed re-examination of diamond core and RC drill chips has been carried out. The diamond core has provided great insight into the mineralised systems in the region and allowed for an enhanced reinterpretation of RC chips. To date 90 holes have been re-logged and the remaining holes are being located to complete the dataset. This program has shown significant areas where drilling has ended in mineralised Tertiary material without intersecting the bedrock. The re-logging has focused on the delineation of boundaries between the unconsolidated Quaternary, the CID, Tertiary conglomerates and the neoproterozoic basement. Table 1 (attached) highlights the different stratigraphic layers and the variable iron content and different metallurgical properties within them. Preliminary metallurgical testing has indicated that there is potential for beneficiation of the quaternary detrital material to produce a saleable product, as well as an upgrading to the CID material. A mineralogical study is currently underway to determine the next phase of metallurgical testing.
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
This will be conducted on small samples of particular stratigraphic horizons and will be followed by larger tests of the most effective processing methods. It is anticipated that metallurgical testing will commence in the second half of April. Figure 2: Mineralised intercepts in recent drilling outside the current resource.
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
Other activities
A Native Title agreement is currently being negotiated with the Eastern Guruma
people. An initial meeting was held in Karratha, in WA, in early March, and Winmar
advises that negotiations are progressing well. The next Native Title meeting is
scheduled for early May.
Also, a second phase of environmental survey is also to be completed in the near term. ENDS For further information, please contact: Mr David Coad Mr James Moses Managing Director Media and Investor Relations Winmar Resources Limited Mandate Corporate P: +61 400 755 128 P: +61 420 991 574 E: [email protected] E: [email protected] W: www.winmarresources.com.au Competent Persons: The information in this document that relates to exploration targets, exploration results and drilling data of Winmar projects is based on information compiled by Mr David Jenkins, a full time employee of Terra Search Pty Ltd, geological consultants employed by Winmar Resources. Mr Jenkins has a BSc Honours degree in geology and is a Member of the Australian Institute of Geoscientists. The information in this document that relates to the Winmar Deposit Resource Estimate is based on information compiled by Mr Craig Allison who is a Member of the AusIMM and a fulltime employee of Runge Limited, an independent resource consultancy group. Both Mr Allison and Mr Jenkins have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Allison and Mr Jenkins consent to the inclusion of their names in the matters based on their information in the form and context in which it appears. Exploration Target: The Exploration Target refers to the conceptual extended mineralisation of the Winmar Deposit and surrounding prospects including detrital, channel and bedded mineralisation, based on drilling to date; interpreted geological model and complementary geophysics. At the present time there is insufficient drilling to determine the extended mineralisation and estimate, and it is uncertain if further exploration will result in the determination of such mineralisation or estimate.
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C/- HLB Mann Judd (NSW) Pty Ltd, Level 19, 207 Kent Street, SYDNEY, NSW, AUSTRALIA, 2000
P. +61 2 9020 4000 E. [email protected] W. www.winmarresources.com.au
Appendix
Table 1 Stratigraphic Interpretation of the Winmar project area. Stratigraphy Descriptions Thickness Grade
Range Preliminary Metallurgy
Quaternary Detritals
Unconsolidated sediments consisting of Hematitic clasts, BIF and Chert
30-100m 25-55%Fe
Gravity separation shows potential for economic exploitation with recoveries of up to 30% at 57%+ Fe
Weathered CID Clay rich fine spheroidal hematite
10-20m 20-40% Fe
Significant magnetic content may assist in upgrade. No metallurgical testing to date
CID Mostly fine Spheroidal Haematite some wood fragments
20-100m+ 50-62%Fe
Gravity and magnetic methods show upgrade of Fe. Some high grade material likely DSO.
Tertiary Detrital Consolidated sediments consisting of Hematitic clasts, BIF and Chert
10m+ 40-50%Fe
Some high grade material, particularly in the southern part of the deposit – Canga style mineralisation. No testing to date.
Basement Shales, dolomites, Cherts
Up to 40%Fe
No testing, some holes ended in moderate Fe grade within ferruginous bedrock. This may be a BIF layer in the Wittenoom or potentially a part of the Marra Mamba
