Major intersections of magnetite mineralisation confirmed at Lake Giles Iron Project

VANCOUVER, British Columbia, Jan. 16, 2020 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS) (ASX: MIO) (the “Company” or “Macarthur”) has confirmed significant intersections of magnetite mineralisation at its Lake Giles Iron Project near Kalgoorlie in Western Australia following the completion of its infill drilling program.

Drilling at the Moonshine North deposit comprised 21 reverse circulation (RC) holes for 3379 metres advance and 9 diamond drill (DD) holes for 1676.2 metres advance totalling 5055.2m. Drilling was completed in December 2019 with final assay results received this week.

Highlights

• DD hole LGDD_070 intersected high grade magnetite mineralisation. The interval 73m to 174m (101m) averaged 28.4% Fe.
  
  
• DD hole LGDD_071 intersected the interval 78m to 162m (84m) averaging 30.4% Fe (including the interval 106m to 130m with a grade of 41.2% Fe).
   
• DD hole LGDD_074 intersected the interval 46m to 99m (53m) averaging 32.8% Fe (see Photo 1).

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/28c81eb2-0324-44db-b9fa-4e6a213792a0

Macarthur Minerals Executive Chairman Mr Cameron McCall was encouraged by the results, saying the successful intersections would form the basis of a revised mineral resource estimate.

“This is an outstanding result that builds our confidence to upgrade the resource classification to include Indicated and Measured Mineral Resources,” Mr McCall said.

“The updated mineral resource, when completed, will underpin the Feasibility Study to be completed for the Lake Giles Iron Project.”

Mr McCall said current drilling was spaced closer together to upgrade the resource classification for some of the Moonshine and Moonshine North deposits to include Indicated and Measured Mineral Resources.

Previously, the deposits were defined by drill hole spacings of 200m x 200m and classified as an Inferred Mineral Resource of approximately 710 mt at 30.2% Fe¹ .

Drilling Results

The following table details significant intervals of magnetite mineralisation for the final five DD and 2 RC holes drilled (Table 1). Note these intersections are not true widths. These results complement the assay results for the first round of samples from the Moonshine Magnetite deposit previously reported to the market on 10 December 2019. For completeness, the drill hole locations for all holes drilled in the infill program are presented in Table 2. Significant magnetite intervals and drill hole locations throughout the Moonshine deposit are shown in Figure 1.

The table below provides analytical results of the programme returned from the SGS Australia Pty Ltd laboratory in Perth. SGS Australia Pty Ltd is a Member of the SGS Group that provides analytical services throughout the world. All samples were dispatched to SGS Perth Laboratory. On completion of each drill hole the calico sample bags were placed in poly-weave bags and transferred to the Ularring exploration compound where they were securely stored. The poly-weave bags were placed in large bulka bags and transported to the assay laboratory depot in Kalgoorlie and then Perth using a contracted freight company.

At all times the samples were under the security of either Macarthur or the transport company personnel, and then under the security of the laboratory. Rip tie security tags were used to secure all samples. Pulp samples were analysed using Borate Fusion with XRF finish (laboratory analytical code XRF78L), considered the industry standard practice for iron ore. Industry standard certified reference materials (CRMs) and blanks were utilized in order to check laboratory assay quality control. The insertion rate for CRMs is a nominal 1 in 20. Different CRMs have been selected for use at varying Iron grades over the life of the project. The combined insertion rate of pulp blanks and CRMs is a nominal 1 in 20 samples. The QA/QC program includes CRMs, blanks, preparation duplicates and field duplicates and is acceptable according to industry standards. Pulp duplicates were also analysed to test for analytical accuracy.

Assay results for intervals of high-grade magnetite reported here are provided in the table below, NOTE these are drill intersections and not true widths.

Samples have been submitted to the laboratory for Davis Tube Recovery (DTR) analysis for determination of the magnetite fraction and concentrate grade.

Table 1. XRF assay results for DD and RC drill samples from the Moonshine and Moonshine North deposits.

Table 2. Drill hole locations for the Moonshine Magnetite infill drilling program.
Highlighted holes relate to assay data presented herein.

A figure accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce0f82c3-e9df-4186-8c40-94a99e80b3f9

On behalf of the Board of Directors, Mr Cameron McCall, Executive Chairman

For more information please contact:

Joe Phillips                                                                            
CEO & Director                                                                    
M +61 (0)448 899 247                                                      
jphillips@macarthurminerals.com                   

A different version of the current report was submitted to the ASX and formatted according to the JORC requirements. The technical data presented in both reports are identical and only the format and legal statements may differ.

Qualified persons

Mr Ian S Cooper, B.Sc., A.R.S.M., F.G.S. FAusIMM, a Fellow of the Australasian Institute of Mining and Metallurgy (membership number 107348, is a consultant of Macarthur and is a Qualified Person as defined in National Instrument 43-101. Mr Cooper is in charge of Macarthur’s exploration programs and has reviewed and approved the technical information contained in this news release.

Company profile

Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project mineral resources include the Ularring hematite resource (approved for development) comprising Indicated resources of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26 million tonnes at 45.4% Fe; and the Moonshine magnetite resource of 710 million tonnes (Inferred). Macarthur has prominent (~1,281 square kilometer tenement area) gold, lithium and copper exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.

This news release is not for distribution to united states services or for dissemination in the United States

Caution Regarding Forward Looking Statements

Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws.  All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but limited to statements regarding: the proposed strategy regarding core mining, road and rail inputs at the Project; anticipated increases in annual production at the Project; anticipated decreases in Project costs; the possible reclassification of current inferred mineral resources on the Project as indicated mineral resources in the future; expected completion of the FS on the Project containing a new reserve calculation and a new economic assessment; the granting of a license for the Menzies rail siding; the status of the MRRT; and plans to secure mining approvals under the Mining Act, are forward-looking statements.  The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements.  Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to:  unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; future changes in strategy regarding core mining, road and rail inputs with respect to the Project; final Project costs varying from those determined from the EOI program; failure to successfully negotiate a BOO arrangement for the Project; failure to complete the FS; failure of the FS to reflect currently anticipated increases annual production and decreases in expected costs at the Project; the results of infill drilling being insufficient to reclassify current inferred mineral resources on the Project as indicated mineral resources; failure to receive a license for the Menzies rail siding; failure to repeal the MRRT; and failure to obtain mining approvals under the Mining Act.  Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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¹ NI43-101 Technical Report filed June 17, 2019, titled “Macarthur Minerals Limited, Preliminary Economic Assessment Lake Giles Iron Project, Western Australia”, NI43-101 Technical Report – Preliminary Assessment