Centrex encouraged by new results

  Centrex Metals Ltd has announced significant positive developments in relation to the South Hematite Pod at its Wilgerup hematite project, on the central Eyre Peninsula, South Australia.Drilling by Centrex from September 2006 to February 2007 resulted in a combined Indicated and Inferred massive hematite resource of 9.1 million tonnes grading 59.8% iron for the North Hematite Pod only, but no resource estimate was completed for the South Hematite Pod. Drilling of the South Hematite Pod area in 2006 was inconclusive with follow-up studies indicating that the previous drilling did not adequately outline areas of potential mineralization. The South Hematite Pod was previously estimated to have an Inferred Resource of 1.77million tones of low phosphorous (0.05% P) hematite at 61% iron. According to exploration manager Alastair Watts, two new drill holes have recently been completed on the South Hematite Pod with both, based on visual estimates, recording down-hole intercepts of 30m to 40m of hematite mineralisation.He said: “The mineralized intercepts consist of some 10m of hematite carbonate overlying approximately 20m of massive hematite before passing vertically into low grade banded iron formation, jaspilite and quartzite.”Further testing along this section will now be undertaken to enable close off the structure across strike (mineralization dips at approximately 40 degrees to east) before testing the strike extension to the north and south. Watts added that detailed geophysical surveys (close spaced ground gravity and aeromagnetics) suggest that the mineralization could have a strike length of up to 1km. The current drilling program will be undertaken in 2 phases. Phase 1 consisting of 2,000m of drilling will target the South Hematite Pod. Phase 2 drilling will consist of around 3,000m and will be directed at the North Hematite Pod which remains open to the east and to the north at depth. The North Hematite Pod infill drilling at 40m by 20m is designed to support a JORC Indicated and Measured Resource which will be used as a basis for the project’s feasibility study.