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Mindax boosts beneficiated magnetite resource to 1.35 billion tonnes at Mt Forrest

Last updated: 15:48 22 Nov 2011 AEDT, First published: 16:48 22 Nov 2011 AEDT

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Mindax (ASX: MDX) has received a revised JORC Resource statement for the beneficiable magnetite (BM) mineralisation at the Mt Forrest Iron Project in Western Australia.

The resource update incorpores additional drilling, assay, geology and geometallurgical information since the last update by consultant CSA in April 2011, and covers seven prospects within the overall project area including Echidna, Emu, Bungarra, Dunnart, Dingo, Bat and Emu.

Consultant Optiro has estimated the Indicated and Inferred JORC Resource for the magnetite mineralisation within these areas to be 831.7 million tonnes at 31.5% iron.

The Indicated BM resource now totals 248.2 million tonnes at 32.6% iron (cut off 25% iron), representing a 200% increase which adds considerable value to the project in terms of generating an ore reserve.

The full BM Indicated and Inferred Resource now stands at 1.35 billion tonnes at 31.5% iron (cut off 25% iron). Mineralisation includes high tenor secondary magnetite development with varying degrees of alteration to microplatey hematite and martite.

There is also an Inferred Resource of 583.5 million tonnes at 31.1% iron of beneficiable magnetite.

Partitioning of high grade bands of magnetite and hematite mineralisation reporting above 40% iron has estimated 26.7 million tonnes at 42.1% iron (Indicated and Inferred category) at the Echidna, Dunnart, Emu and Bulga prospects. The high tenor BM mineralisation remains open along strike.

A resource update for the regolith iron mineralisation is in preparation.

The update is based on 150 reverse circulation drill holes, one diamond drill hole and 5,569 samples. It also includes nine reverse circulation and one diamond hole that were unavailable at the time of the previous Resource estimate.

Mindax's Mt Forrest Iron Project is progressing through feasibility with a view to mining at the end of 2013. The company is gradually putting in place necessary approvals and aligning infrastructure partners including rail and port.

The project is located 170 kilometres northwest of the town of Menzies in Western Australia, which is on the railway line to the deepwater iron ore port of Esperance.

The project covers seven Mining Leases totalling 50 square kilometres and includes complex iron formation extending over 20 kilometres strike.

High Tenor Magnetite

A critical component of the Mt Forrest mineralised position is the locally intense alteration of iron formation to secondary magnetite and microplatey hematite and subsequently to martite.

Using a cut off of 40% Fe, a total of 26.7 Mt of high grade ore has been identified. These high tenor positions are open at depth and along strike and pose an important target in their own right.

This material also has great significance for the development of high grade goethite materials in the regolith environment closer to the surface.

Geometallurgy

Extensive Davis Tube testwork has been carried out through the Mt Forrest project area. Some 930 analyses have been completed to establish the variation within the resource.

This allows differentiation of prospects as far as likely concentrates are concerned. It also contributes significantly to the geological knowledge of what is a significant mineralised system.

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