Macarthur Minerals Limited

Macarthur Minerals Limited

December 08, 2009 08:30 ET

Macarthur Minerals Limited: New Haematite Iron Mineralisation Identified at Lake Giles Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2009) - Macarthur Minerals Limited (TSX VENTURE:MMS) is pleased to advise that outcropping haematite mineralisation averaging 57.4% Fe (range 50% to 63.5% Fe) from surface rock chip samples has been identified at Red Hill, Banjo and Moonshine prospects at its Lake Giles Project. The Fe assays were accompanied by low phosphorous levels of 0.058% P and 7.8% SiO2. These results are of similar grade to some of the iron ores being mined elsewhere in Western Australia and indicate that there is potential for the identification of direct shipping ore (DSO) in the Lake Giles Project.

The recognition of the new haematite area is largely due the recent mapping programme carried out by Mr David Pearcey an experienced Iron Ore geologist from CSA Global ("CSA"). CSA were engaged to complete detailed mapping at its Moonshine, Clark Hill and Banjo project areas.

Details of the results are provided below:

The Banjo project is a newly identified area and is located 5km to the east of Moonshine project. The area was recognised as a significant magnetic low and gravity high geophysical feature. Mapping and sampling has delineated a zone of outcropping haematite mineralisation 700m in length and up to 35m wide. A total of 22 rock chip samples collected over six traverses of the outcropping haematite returned an average of 57.5% Fe with 8.8% SiO2 and 0.056% P.

The Moonshine project contains the company's largest Inferred Resource; the company made a market release dated 2 December detailing an increased to the Inferred Mineral Resource to 511mt at 27.8% Fe. The haematite occurrence is located 100m to the east of the high grade magnetite that was encountered in RC drill hole LGRC203. Mapping and sampling has delineated a zone of outcropping haematite 500m in length and up to 25m wide.

The Red Hill project is a series of outcropping low lying hills at the northern end of the project. Mapping and sampling has delineated a zone of outcropping haematite mineralisation 400m in length and up to 20m wide. A total of 24 rock chip samples collected over eight traverses of the outcropping haematite returned an average of 57.3% Fe with 7.1% SiO2 and 0.06% P.

The depth of the surface haematite is unknown as no drilling has been completed within the areas of outcropping haematite mineralisation. Evaluation of the remaining haematite targets will continue via systematically mapping and sampling over the next three months to allow the prospects to be prioritised for the 2010 field season drilling campaign.

Mr Alan Phillips stated "Lake Giles exploration has been focused on the delineation of a substantial magnetite resource, which has recently been achieved. I am very encouraged that haematite mineralisation has also been identified, especially given the search for haematite has just commenced". Mr Phillips also said this augured well as the company has another 24 geophysical targets to evaluate. Delineating direct shipping ore (DSO) at Lake Giles will have obvious economic benefits and will add significant value and weight to the advancement of the project; given we have only just released an Inferred Resource of 1.05 billion tonnes at 28.3% Fe.


Mr. Andrew Spinks B.App.Sc, Grad.Dip (Mining), a member of AusIMM, and a consultant geologist, is a Qualified Person as defined in National Instrument 43­101 ­Standards of Disclosure for Mineral Projects ("NI 43­101"), in charge of the exploration on the Lake Giles project.

On behalf of the Board of Directors,


Alan Phillips, President, Chairman & CEO

ACN 103 011 436


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