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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	HAZ
Latest Price:	0.11 (10.00% )
52-week High:	0.23
52-week Low:	0.10
Market Cap:	29.00M

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Hazelwood Resources

Hazelwood Resources (ASX: HAZ) is an emerging ferroalloy producer, with a majority interest in the largest, most advanced ferrotungsten plant outside of China.

Hazelwood Resources delivering on assay results from Cookes Creek Tungsten project

Monday, August 24, 2009

News from the Cookes Creek Tungsten Project continues to confirm what studies by Hazelwood Resource (ASX: HAZ) have indicated to date.

Located in the East Pilbara of Western Australia, approximately 70 kilometres by road from the town of Nullagine, all assays are now in from the recent drill program.

Designed to provide a revised geological model and update mineral resources, drilling at the Big Hill tungsten deposit has intersected both large widths of scheelite mineralisation that is considered amenable to bulk-mining and processing and narrower zones of high grade material.

Better results included:

- 92 metres @ 0.12% WO3 from 125 to 217 metres in hole 08BHRD055
- 20 metres @ 1.62% WO3 from 62 to 82 metres in hole 09BHD010
- 13 metres @ 0.25 WO3 from 115 to 128 metres in hole 09BHD005
- 17 metres @ 0.33% WO3 from 84 to 101 metres in hole 09BHD009

With the tungsten concentrate price currently at $US144 - 153/mtu, (average price during 2008 was US$185/mtu) and new demand, Hazelwood has timed its run well. With mining primed to commence at Cookes in late 2010, tungsten prices are likely to continue to recover.

The current project concept is a bulk mining and processing operation that exploits the entire width of the mineralised sequence, however there is evidence of higher grade tungsten zones within the Big Hill Tungsten Deposit.

With most of the existing Mineral Resource within 100 metres of surface, many of the higher grade zones can readily be accessed via open pit mining. With a strip ratio of <1:1, Hazelwood should be extremely competitive as a tungsten producer.

Not that this has been lost on investors, the Hazelwood share price has steadily risen from 7 cents in March to 24 cents in August 2009.

Only one third of the strike extent of the mineralised sequence has been resource drilled, and there are also high grade tungsten exploration drilling results at the nearby McLeods Shear Zone.

With an upgrade in mineral resource likely soon, Hazelwood's chances of producing 2-3% of the world’s primary tungsten, look very reasonable indeed.

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