AUSTRALIAN SECURITIES EXCHANGE RELEASE FOR IMMEDIATE RELEASE
General Manager Friday 15th June 2012 The Company Announcements Office Australian Securities Exchange Electronic Lodgement System
Dear Sir/Madam
499Mt IRON ORE MILESTONE FOR CENTREX’S FUSION PROJECT ON SA’s EYRE PENINSULA INCLUDES MAIDEN INDICATED RESOURCE
HIGHLIGHTS • 499 million tonne (Mt) Inferred and Indicated Mineral Resource milestone for Fusion magnetite iron project • Includes Fusion’s maiden Indicated Mineral Resource - 54.5Mt for Koppio deposit • Koppio’s overall inventory up significant 34% to 176.3Mt • Further resource upgrades expected during 2H 2012 for Fusion’s other deposits • Results part of Fusion’s current and well advanced A$45m Definitive Feasibility Study – due for completion early 2013
SUMMARY
The first Indicated Mineral Resource estimate has been announced by Centrex Metals Limited (“Centrex”) for its Fusion magnetite iron project (“Fusion”) on South Australia’s Eyre Peninsula.
The 54.5 million tonne (Mt) Indicated Mineral Resources – for Fusion’s Koppio deposit - is a further milestone for Centrex and Wuhan Iron and Steel Co Ltd (WISCO), Centrex’s 60% joint venture partner in the Eyre Peninsula Joint Venture (“EPJV”), as the JV pushes ahead with its A$45 million Definitive Feasibility Study into Fusion’s commercial potential.
The maiden Indicated Mineral Resource is part of an overall upgrade to Fusion’s Mineral Resource estimateonly use personal For to 499 million tonnes. The upgrade results from the joint venture’s current and ongoing 108,000 metre diamond core drilling campaign to establish Fusion’s Mineable Ore Reserves for the life of mine and to define the further resource potential.
CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752
Koppio’s inventory increased 34% to a combined Inferred and Indicated Mineral Resource of 176.3Mt compared to the deposit’s original 131.3Mt Inferred Mineral Resource only earlier estimate.
Fusion Summary Mineral Resources
Head Grade Concentrate Grade Tonnage DTR Deposit (Mt) Fe SiO2 (%) Fe SiO2 (%) (%) (%) (%) Indicated Mineral Resources Koppio(1) 54.5 24.1 52.3 19.3 68.2 4.1
Inferred Mineral Resources
Koppio(1) 121.8 24.4 52.2 19.6 68.7 3.5
Brennand(2) 122.4 24.1 51.0 21.3 67.3 5.0
Kapperna(2) 65.7 28.3 44.6 29.4 70.2 1.9
Iron Mount(1) 135.0 25.5 36.7 29.3 62.1 9.1
Total Inferred 444.9 25.2 46.0 24.5 66.5 5.4 Combined Mineral Resources
Total 499.4 25.1 46.7 23.9 66.7 5.2
*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm
The enhanced Koppio deposit resource includes a significant uplift in the grade of Koppio with an increase in the DTR to 19.6% (up 5.3% from the previous estimate of 14.3% DTR). Further drilling at Koppio in 2012 is expected to convert more of the Mineral Resources to Indicated.
Theonly use personal For Koppio upgrade includes a new extension over the northern section of the previously identified Tom’s magnetic anomaly.
CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752
Figure1: Drill hole location map showing high-resolution aero-magnetic image of Koppio.
FUSION OVERVIEW
Fusion is located approximately 35km north of the city of Port Lincoln on the Southern Eyre Peninsula, South Australia. The project comprises numerous prospective magnetite deposits spanning a 50km anomalous magnetic BIF trend. The Centrex JV aims to establish a centralised processing facility at Fusion to access all deposits within the project area and transport 40km NE via slurry pipeline to Port Spencer for export. Centrex holds a 50% interest in Port Spencer with WISCO, holding the remaining share in a JV separate to the Fusion magnetite project alliance.
The focus of mining and project studies to date has been the deposits of Koppio, Brennand and
Kapperna (roughly 10km total strike length). These deposits are targeted for the initial mining For personal use only use personal For operation at Fusion. However, further drilling across the project area in 2012, in particular at Bald Hill and Charlton Gully, will seek to increase the project’s resource base. This resource base would support a long-term iron ore industry in the region and act as a catalyst to the development of vital
CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752
infrastructure on the southern Eyre Peninsula, including Port Spencer, as well as potentially underpinning a new electricity transmission network that could have the added benefit of unlocking much of the Eyre Peninsula’s green energy (wind) potential.
Figure: Location map showing high-resolution aero-magnetic image of Fusion.
FORWARD WORK PROGRAM
Eyre Iron is already well underway with its Definitive Feasibility Study (“DFS”) for Fusion which it aims to complete early in 2013 at a cost of approximately A$45 million. Baseline and approval studies have already commenced. WorleyParsons is currently completing detailed metallurgical test work studies to feed into the DFS process and infrastructure design. Golder Associates will undertake resource modeling and mining design for the study.
With the signing of the joint venture between Centrex and WISCO for Port Spencer, Port Spencer Pty Ltd will continue development and approvals studies for the port in line with Fusion’s development. only use personal For
CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752
For further information please contact:
Ben Hammond or Jim White Chief Operating Officer Managing Director Eyre Iron Pty Ltd Centrex Metals Limited Ph (08) 8221 6177 Ph (08) 8100 2200
Competent Persons’ Statements
(1) The information in this report relating to Mineral Resources is based on and accurately reflects information compiled by Mr Alan Miller of Golder Associates who is a consultant and adviser to Eyre Iron Pty Ltd and who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Miller has sufficient experience, which is relevant to the style of mineralization 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 Miller consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.
(2) The information in this report relating to Mineral Resources and current Exploration Targets is based on and accurately reflects information compiled by Mr Alex Virisheff of Coffey Mining Limited who is a consultant and adviser to Eyre Iron Pty Ltd and who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Virisheff has sufficient experience, which is relevant to the style of mineralization 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 Virisheff consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For personal use only use personal For
CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752