High-grade hematite at Shine

  Gindalbie Metals has announced that Phase 1 drilling over the Shine, Gap and Lister Prospects at the Warriedar JV (Gindalbie 60 percent) has been completed, with significant assay results returned from the Shine prospect and further results from the Gap and Lister Prospects still pending.According to Gindalbie, the high-grade hematite mineralisation present at Shine was returned from four lines of drilling spaced 200m apart along strike. The deeper enriched zones were intersected in eight of 10 holes drilled at the prospect. Surface outcropping hematite enrichment extends a further 200m north into a tenement held 100 percent by Gindalbie.The mineralisation at Shine occurs below surface outcrops of DSO-grade iron ore mapped earlier in 2007, representing iron enrichment mineralisation associated with alteration of the host BIF horizon within the oxidation zone to a depth of approximately 100m below surface.The drilling undertaken to date confirms Gindalbie’s view that the Direct Shipping Ores (DSO) at the Warriedar JV tenure comprise near-surface supergene ore that marks areas of high-grade enrichment at depth.Gindalbie’s Managing Director, Garret Dixon said that while the extent of the DSO-grade mineralisation could not yet be quantified, the company believes that sufficient quantities of ore can be defined at Shine to enable the evaluation of the project as an attractive addition to other iron ore projects proposed for the area.“We are looking forward to continuing to identify new areas of high-grade hematite mineralisation as part of our ongoing exploration activities in the immediate vicinity of the proposed infrastructure at Karara,” Mr Dixon said. Further phases of drilling at all the prospects within the Warriedar Joint Venture will be undertaken when all assay data has been received to test the extent and consistency of this style of mineralisation both along strike and internally.