Minemakers Limited
TSX : MAK
ASX : MAK

Minemakers Limited

October 05, 2011 10:19 ET

Minemakers Limited-Wonarah Phosphate Deposit: Significant Resource Additions from 2011 Drilling Programme

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2011) - Minemakers Limited (TSX:MAK)(ASX:MAK)(NSX:MMS)

HIGHLIGHTS

  • An 82 hole drilling programme in 2011 has increased estimated Inferred resources for the Main Zone by approximately 60%.

  • The 2011 drilling mainly tested 3-4km to the north of previously reported Main Zone resources, with approximately 90km more to be drill tested in the future.

  • New Main Zone estimated resource is:
Main Zone 0% Cut-off 10% Cut-off
Mt % P2O5 Mt % P2O5
Indicated 509 12.1 252 18.2
and Inferred 902 11 395 18
  • In combination with the Arruwurra Deposit which has yet to be closed off by drilling, the total estimated Wonarah resources, effective as of October 2011 and prepared by Hellman and Schofield Pty Ltd, now stand at:
Total 0% Cut-off 10% Cut-off
Mt % P2O5 Mt % P2O5
Indicated 565 12.6 303 18.2
and Inferred 987 11 479 18
  • The additional resources resulted from a programme costing approximately AU$480,000, for a discovery cost of less than 0.3 cents per tonne.

The 2011 drilling programme aimed to test for a northerly extension of the Main Zone in the tenements north of the Barkly Highway, and to infill two un-drilled areas in the southern part of the Main Zone, as shown in red in the figure below. A further target area near the Barkly Highway, and to the west of the Main Zone, was inaccessible due to the extraordinarily severe 2010-2011 wet season.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/MAKFigure1.pdf.

The 2011 drilling proved general continuity of the Main Zone northwards for 3-4km from previously estimated resources. Outlying holes were drilled at insufficient density to support a resource estimate at this time, but indicate potential to outline additional resources when further drilling is undertaken in the future.

The Arruwurra deposit was not tested in the 2011 programme and it is open laterally with a reasonable expectation of a considerable increase in resources when drilled. It is regarded as a prime target by Minemakers because of its relatively thin overburden and hence likely lower potential mining cost.

The new drilling and resource estimates confirm Wonarah is by far the largest phosphate deposit known in Australia.

Mineral resource estimates were previously released in 2010 and compare with the 2011 estimates as follows:

2010 and 2011 resource estimates at 10% P2O5 cut off
2010 2011
Mt % P2O5 Mt % P2O5
Main Zone Indicated 238 18.6 252 18.2
and Inferred 247 18 395 18
Arruwurra Indicated 51 18.3 51 18.3
and Inferred 84 16 84 16
Total Indicated 289 18.5 303 18.2
and Inferred 331 17 479 18
The 10% cut-off is used as a likely indication of feed material for a beneficiation plant on site.
2010 and 2011 resource estimates at 0% P2O5 cut off
2010 2011
Mt % P2O5 Mt % P2O5
Main Zone Indicated 480 12.2 509 12.1
and Inferred 637 10 902 11
Arruwurra Indicated 56 17.3 56 17.3
and Inferred 85 16 85 16
Total Indicated 536 12.7 565 12.6
and Inferred 722 10.7 987 11.4

The 0% cut-off estimates represent the entire package of phosphatic units included in current estimates.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/MAKFigure2.pdf.

Managing Director and CEO, Andrew Drummond, stated: "The results are firmly in line with expectations as we begin to test along strike from the known deposits with the aim of optimising the first areas to be mined. This drilling programme added 163Mt to our beneficiation feed resource base at a cost of less than 0.3 cents/tonne. Total resources now stand at almost 800Mt at 18% P2O5 for potential early mill feed, or more than 1.5Bt at zero cut-off in the overall phosphatic horizons. It highlights the potential for Wonarah to become one of the world's premier phosphate mining centres in due course, and that additional mineralisation can be found quickly and cheaply when required in the future."

A National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report supporting the upgraded mineral resource estimate will be made available on Minemakers' website and filed on www.sedar.com within 45 days of the date hereof.

Andrew Drummond, Managing Director & CEO

For further information on the Wonarah Project, please refer to the Company's NI 43-101 compliant technical report entitled "Mineral Reserve Estimation for Wonarah Phosphate Project, Northern Territory, Australia", dated September 2010 and available on the Company's website and www.sedar.com.

The information in this report that relates to Exploration Results, Exploration Results, cut off grades, project background and Minemakers Comments on the Hellman & Schofield estimates is based on information prepared under the supervision of Andrew Drummond, who is Managing Director of the Company and a Fellow of The Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Drummond has sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Drummond is a 'Qualified Person' as defined in NI 43-101 and has supervised the preparation of this report. Mr Drummond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report that relates to the current Mineral Resource estimates for Arruwurra and Main Zone reflects information compiled by Jonathon Abbott who is a full time employee of Hellman and Schofield Pty Ltd. Mr Abbott, a member of the Australian Institute of Geoscientists, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves." and as "Qualified Person" as defined in NI 43-101. Mr Abbott consents to the inclusion in the report of the matters based on the information compiled by them, in the form and context in which it appears.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this report relative to markets for Minemakers' trends in resources, recoveries, production and anticipated expense levels, as well as other statements about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Minemakers does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

In accordance with JORC Code Clause 18, with respect to future exploration of the phosphatic target zone, the potential quantity and grade of any discovery conceptual in nature, there is insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.

Notes:

Resources have been estimated by Hellman & Schofield, Minemakers' independent resource consultants. Ordinary Kriging was used in a manner consistent with that previously reported and lodged on www.sedar.com.

There are no known legal, political, environmental or other risks that could affect the potential development of Wonarah other than those previously disclosed.

Data Verification: Hellman & Schofield has reviewed the sampling, quality control and assay procedures undertaken by Minemakers and has expressed its satisfaction with them for the current estimates.

ABN 48 116 296 541

Contact Information

  • Minemakers Limited
    Mr Andrew Drummond
    Managing Director
    +61 8 9264 7000
    +61 8 9264 7099 (FAX)
    www.minemakers.com.au

    Collins Street Media
    Mr Ian Howarth
    Manager (Vic)
    0407 822 319