Murchison acquires Rocklea

Murchison Metals has made its first acquisition in the world-class Pilbara iron ore.....

  Murchison Metals has made its first acquisition in the world-class Pilbara iron ore province in two separate agreements, acquiring E47/952 from Austral Gold Limited and iron ore rights on the adjoining E47/1153 from Joytell Pty Ltd for a total cash consideration of $9m.Murchison must also pay a $1/tonne royalty to Joytell on any future production. The two tenements, to be known as the Rocklea Project, total over 400sqkm and are considered to be highly prospective for Channel Iron Deposit style mineralisation. Up to 40 strike kilometres of prospective palaeochannel has been identified on the tenements from satellite imagery and geological mapping. Murchison Managing Director, Trevor Matthews said he was extremely optimistic about the iron ore potential of the Rocklea Project and excited by the opportunity to secure such a promising land holding in the heart of the world's premier iron ore producing region. “The opportunity represented by Rocklea is of such a scale that it justifies Murchison's entry into the highly prospective Pilbara region, especially given its ideal location close to existing facilities and excellent road and air access,” Mr Matthews said. Murchison intends to rapidly advance all necessary environmental and heritage approvals and begin drilling in the second half of 2008. Due to the preliminary state of exploration at the Rocklea Project there is currently insufficient data to define a Mineral Resource or to determine whether future exploration will result in the determination of a Mineral Resource.