Crosslands Resources on track with Jack Hills iron ore project

Murchison Metals Ltd released an update on regional exploration by Crosslands...

  Murchison Metals Ltd released an update on regional exploration by Crosslands Resources Ltd on Friday.Crosslands is a dedicated iron ore company and is one of the largest tenement holders in the mid-west iron ore province. Crosslands is owned 50% by Murchison and 50% by Mitsubishi Development Pty Ltd a subsidiary of Mitsubishi Corporation of Japan. Crosslands owns and operates the Jack Hills iron ore project located 380kms north east of Geraldton. Crosslands has commenced a major regional exploration initiative to complement the resource extension drilling program currently under way at the Jack Hills iron ore project. Highlights of the Crosslands regional exploration program include:  Commencement of first pass drilling at Stewart Bore • Planned first pass drilling at Weld Range • The acquisition of an additional prospecting licence at Weld Range This regional work program complements the significant progress being achieved at Jack Hills, where Crosslands is undertaking bankable feasibility studies into the Stage 2 expansion of the Jack Hills iron ore mine. Murchison Managing Director Trevor Matthews said the extensive work underway at Jack Hills and at Crosslands' regional landholdings reflected its commitment to become the premier iron ore producer inthe mid-west region of Western Australia. “Jack Hills is already a successful operating mine and we are extremely confident of confirming its exploration potential to become the biggest and most important producer of iron ore in the region,” said Mr Matthews. “We are also very confident the regional exploration program will significantly enhance Crosslands' resource base and drive further value for Murchison shareholders.” In conjunction with the resource extension program currently underway at Jack Hills, Crosslands is also undertaking extensive metallurgical testwork into the beneficiation of extensive lower grade magnetite mineralisation present within the Banded Iron Formations which host the Jack Hills resource. This initial program of testwork is expected to be complete by the end of April 2008, and will include conceptual processing plant design layout and associated capital and operating cost estimates for the beneficiation of this material. Preliminary results have so far indicated that simple conventional crushing and magnetic separation of this material can produce an additional suite of premium-grade iron ore products. Additionally, Crosslands is expected to complete an updated Mineral Resource estimate for the Jack Hills project next month. In addition to its 50% interest in Crosslands, Murchison has a 50% economic interest in Oakajee Port and Rail (OP+R). OP+R is seeking to be awarded the right to construct new port infrastructure to serviceminers (including Crosslands) and other potential customers in the mid-west region of WA. The remaining 50% economic interest in OP+R is held by Mitsubishi.