Minemakers Limited
TSX : MAK
ASX : MAK

Minemakers Limited

July 07, 2011 11:52 ET

Minemakers Limited: Wonarah Progress Update

HIGHLIGHTS

- NMDC Enabling Study is well underway; led by KEMworks of Florida.

- NMDC Ltd. ("NMDC") executives shortly to be in Australia to advance joint studies.

- Proposed Agreements with NMDC under preparation.

- Drilling resumption after the extraordinary wet season is returning promising values to the north and south of the Main Zone. An updated resource is expected in Q3 2011.

WEST PERTH, WESTERN AUSTRALIA--(Marketwire - July 7, 2011) -

ENABLING STUDY

Minemakers Limited ("Minemakers" or the "Company") (TSX:MAK)(ASX:MAK)(NSX:MMS) has engaged KEMworks, an independent and international phosphate and fertiliser consultancy based in Florida, to lead the Enabling Study on the full scale development of Wonarah. Senior managers from KEMworks have recently been on site, in Perth and in Darwin. They are working with Minemakers' Wonarah management.

The aim is for KEMworks to provide a technical and economic overview of the various alternatives for the development of Wonarah and for downstream processing to produce phosphate fertilisers. Their report is due to be delivered in August 2011.

Two senior NMDC managers in engineering/development and finance, respectively, will be in Australia during the second half of July to gain Project familiarisation, and to work with Minemakers and KEMWorks' management on the Enabling Study.

JOINT VENTURE AGREEMENT

That study will allow NMDC to determine whether it enters into a Joint Venture with Minemakers under which a full bankable feasibility study would be undertaken. Under the terms of the current non-binding MoU, NMDC would purchase a 50% interest in Wonarah and would be responsible for securing a debt facility to allow project development.

In anticipation of a positive result of that Enabling Study, Minemakers has commenced preparation of the proposed Joint Venture Agreement and other related Agreements.

MINESITE OPTIMISATION

The extraordinary wet season at Wonarah has finally come to an end and drilling, which had been deferred since October 2010, has recently been resumed.

A target area for possible shallow mineralisation in the northwest area of Wonarah is still inaccessible and so attention has being directed to characterising the northerly extent of the Main Zone to the north of the Barkly Highway. Interestingly, this is the original discovery area by government geologists in the 1960s.

Initial assay results are disclosed in Figure 1 and the Table thereon. A large area with sparse previous drilling is also being infilled along the southern edge of the Main zone. The overall aim is to choose the best economic site for the initial mining operation for material to be treated in a beneficiation plant. Minemakers is targeting mineralisation at an 18-20% grade. In view of the assay results being received so far, a potential increase in the relevant mineral resource estimate position appears possible in due course. The potential quantities and grades disclosed herein are conceptual in nature. There has been insufficient exploration to define an updated mineral resource at Wonarah and it is uncertain if further exploration will result in the targets disclosed herein being delineated as a mineral resource.

PHOSPHATE PRICES

According to trade press, third-quarter prices for benchmark Moroccan phosphate rock are likely to be increased by a further $25-$30 per tonne, in addition to the second quarter increases of similar size. (Source: Fertilizer Week, June 28). Price increases are also anticipated for Phospohric Acid and DAP/MAP products. Confirmation will be provided to shareholders when available.

Andrew Drummond, Managing Director and CEO

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and approved by 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' and a 'Qualified Person' as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. 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.

For further information on Wonarah, please refer to Company's NI43-101 compliant technical report entitled 'Technical Report, Mineral Reserve Estimation for the Wonarah Phosphate Project, Northern Territory, Australia', dated September 6, 2010 and available on the Company's website and www.sedar.com.

To view Figure 1: 2011 Drilling and Assay Results, please visit the following link: http://media3.marketwire.com/docs/2011Drilling.pdf.

Appendix: Exploration Results Information

  • All drilling is by reverse circulation percussion techniques.
  • All holes are vertical and sampled on a one metre basis.
  • Samples for assay are selected by the site geologist, aided by a portable XRF analytical instrument.
  • Duplicate and blank samples are routinely submitted for Quality Assurance and Quality Control ("QAQC").
  • Prior to any resource estimation a suite of mineralised samples will be selected and submitted to a second laboratory for QAQC.
  • Only better mineralised holes are shown on Figure 1. All results will be made available on the Minemakers' website and will be provided to the independent geostatistician for his QAQC and resource estimations.
  • There are no significantly higher grade intervals within a lower grade intersection.
  • There are no known drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to in this release.
  • There is no relationship between Minemakers and any laboratory it uses beyond a commercial service provider/customer one.
  • Samples are assayed by Amdel Limited at Mount Isa, Queensland, Australia using fusion disc XRF analysis on 100g rotary split samples from riffled drill samples averaging 15kg.

ABN 48 116 296 541

Contact Information

  • Minemakers Limited
    Mr Andrew Drummond
    Managing Director
    +61 8 9264 7000
    +61 8 9264 7099 (FAX)

    Minemakers Limited
    Mr Dean Richardson
    Corporate Business and Investor Relations Manager
    +61 8 9264 7000
    +61 8 9264 7099 (FAX)
    www.minemakers.com.au

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