Initial resource announced by Giralia Resources

Giralia Resources NL has announced an initial JORC compliant Inferred Resource....

  Giralia Resources NL has announced an initial JORC compliant Inferred Resource of 7.2 million tonnes at 57.2 % iron for the western portion of the company’s 100% owned segment of the Weld Range.Weld Range is located immediately along strike from the Midwest Corporation Ltd and Sinosteel Corporation Joint Venture, in Western Australia's emerging Mid West iron ore province. Delineation of this initial resource is based on a total of 44 reverse circulation drill holes completed to date by Giralia in testing the western 3km of its wholly owned segment of the Weld Range for hematite direct shipping ore (DSO). Internationally recognised geological consultants CSA Australia Pty Ltd were commissioned by Giralia to complete an initial resource estimate on the Beebyn-Weld Range deposits. Methodology, procedure and parameters used for the resource estimate are detailed below in the CSA summary report. Further exploration and resource drilling is planned at Beebyn–Weld Range in the first calendar quarter of 2008. Drilling will include step out drilling along strike of the W22 zone, the largest and highest grade of the 4 zones of hematite mineralisation defined to date, which remains open ended for approximately 1km from the western end of the resource model.Initial drilling is also planned at the company’s 100% owned Beebynganna Hills project, an 11km long iron formation range only 10km to the south of the Weld Range, where mapping and surface sampling by Giralia has outlined seven zones of hematite mineralisation. Commenting on the initial estimate, Giralia’s Chairman Graham Riley said: “This initial resource estimate clearly demonstrates the strong potential of Giralia’s Beebyn project. The estimate covers only half of the 6km potential strike in the company’s Weld Range segment, supporting our DSO Exploration Target of 10 to 20 million tonnes. We are confident of increases with further drilling of open ended hematite zones.“Additionally the company is excited by the recent discovery of high grade iron ore outcrops at our nearby 100% owned Beebynganna Hills project, where we have a DSO Exploration Target of 30 to 50 million tonnes. Completing a preliminary resource estimate was a priority for the company and should ensure our involvement in discussions on regional infrastructure and development.” Giralia is exploring a 6km long segment of the north-eastern Weld Range, immediately along strike from the Midwest Corporation Ltd and Sinosteel Corporation Joint Venture, which is proceeding with a Pre-Feasibility Study on mining at a minimum rate of 15 million tonnes per annum from its segment of the Weld Range adjoining Giralia's tenements. Importantly, rail infrastructure is proposed right to Giralia's "doorstep".