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Murchison Metals

Murchison Metals inks maiden resource at Rocklea Iron Ore Project

Murchison Metals (ASX:MMX) has announced a maiden Inferred Mineral Resource estimate for its 100% owned Rocklea Iron Ore Project following the successful completion of the phase one Reverse Circulation (“RC”) drilling program.

Murchison is particularly pleased to have taken the project from grass roots on acquisition in April 2008 to a maiden Mineral Resource in only 10 months.

The Rocklea Iron Ore Project is located in the heart of the Pilbara Iron Ore Province, 40km west of Tom Price and 50km north of Paraburdoo. The phase one drilling program was designed to test the extent and grade of Channel Iron Deposit style mineralisation. 277 RC holes were drilled in two months for 9,864 m.

Based on the results of the drilling, the maiden JORC compliant Inferred Mineral Resource is estimated to be:

- 100mt at CaFe 59%, Fe 52%, including 58mt at CaFe 60%, Fe 52%.

Murchison Executive Chairman Paul Kopejtka welcomed the positive results. “To achieve such a significant initial Resource in only 10 months is an outstanding result that clearly reinforces our view on the tremendous potential of the Rocklea Project.” said Mr Kopejtka.

“These results confirm Rocklea as an important addition to our portfolio of projects including our flagship 50% interest in the Crosslands Resources and Oakajee Port and Rail businesses”.

Channel Iron Deposits made up about one third of Australia’s total iron ore production in 2008 and are highly valued by customers for their excellent sintering properties and ultra-low phosphorous levels. Iron Ore producers also favour this deposit style for their typically low strip ratios and low mining costs.

While the iron grades tend to be lower than the more traditionally exploited Bedded Iron Deposits, much of this is accounted for as water of crystallisation, measured as LOI, which is easily burnt off in the sintering process. It is therefore the calcined iron (CaFe) grade and key contaminant levels which should be used to assess the quality of iron ore deposits.

Beyond the 3.3 km of strike length modelled, Murchison’s Mineral Resource remains open to the north-west and south and these areas are planned to be tested during phase two drilling in 2009.

Potential development options for the project will be considered by the Company in 2009. These may include negotiating third party rail access on one of several planned and current rail networks located between 20 and 200km from the project or cooperative development with other explorers in the region. It should be noted that the ultra-low phosphorous levels may represent a significant blending opportunity for nearby iron ore producers.