Annual report for period 6 April 1996 to 5 April 1997 ERL128, Huandot magnesite deposit

Abstract

A total of 87 RC drill holes totalling 3510m were completed in two stages. The initial program of 47 hole (1902m) located 2 areas of clean, pure magnesite with low overburden ratios (Areas 1 and 2). The second stage of drilling concentrated upon area 2. This drilling defined two zones (zones A and B) of high grade magnesite separated by a corridor of deep overburden. Zone A contains a global resource of 2.16Mt of magnesite grading 26.6% Mg, 0.53% Fe and 6.33% acid insolubles. Zone B contains an estimated resource of 2.41Mt averaging 26.2% Mg, 0.5% Fe and 5.5% acid insolubles.