Joint venture partners Padbury Mining and Aurium Resources have announced an upgrade to the JORC resource at the Telecom Hill deposit within their Peak Hill iron project. The new resource estimate includes 925 million tonnes @ 27.2% iron, 46.5% silicon, 3.5% aluminium, 0.22% phosphorus and 0.04% sulphur hosted by magnetite-bearing banded iron formation (BIF) units.

This represents an overall increase of 75 million tonnes to the maiden JORC estimate. The mineral resource estimate is based on 128 reverse circulation holes and five diamond holes for a total of 21,959 metres completed between 2009 and 2012.

Telecom Hill is about 120km northwest of Meekatharra, in Western Australia’s mid-west Murchison region. The joint venture partners will continue to develop the project and work towards a pre-feasibility study to provide a better understanding of its economics.

The potential for identification of additional resources in the Telecom Hill area is high. A total of 675 million tonnes @ 26.4% iron has been estimated in the inferred category in this mineral resource update, which offers immediate targets for closer spaced drilling that are likely to further upgrade the resource.

There also remains good potential for discovery of additional resources in the Telecom Hill area as extensions to the existing BIFs. Between the East and West Domains at Telecom Hill lies an area which is mapped as BIF but has not been tested with drilling. This area has a high potential to host additional BIF magnetite resources.

In mid-2009, the partners recognized the potential of the Telecom Hill deposit area to host significant tonnages of magnetite beneficiation feed ore (BFO), and since then have undertaken a number of exploration programs to increase understanding of the deposits.

Drilling at the Telecom Hill prospect so far has tested just 4km of the identified 10km strike length of the targeted area of iron mineralization. Exploration data indicates there is substantial potential for delineation of additional mineralization. Padbury has a solid program of work planned to develop the Peak Hill project over the next three years, with production targeted for 2015-2016.

www.padburymining.com.au

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