The known magnetite resource at Gindalbie Metals’ Karara Iron Ore Project in Western Australia has increased by 100% to 1.853 billion tonnes grading 35.4% iron.

In addition, a remodelled pit design has provided a revised probable ore reserve of 522 million tonnes grading 36.3% iron.

The revised mineral resource and ore reserve inventory confirms the status of Karara as one of the largest undeveloped ore bodies in Australia, capable of supporting a world-class, long-life operation.

The total indicated and inferred resource represents a doubling of the resource of 929 million tonnes at 36.3% iron announced in September 2007.

The revised ore reserve is contained within a pit designed around the original project start up parameters of producing 8 million tonnes per annum of high grade magnetite concentrate over a 25-year period.

Gindalbie has now started work on a new pit design to define larger ore reserves to support increased production levels such as the proposed expanded production rate of 12 million tonnes per annum now being studied.

The updated resource inventory follows the completion of more than 31,300 metres of drilling in 223 drill holes.

The drilling has continued to demonstrate the robustness, consistent grade and quality of the magnetite ore body at Karara, which is being developed by Gindalbie and its 50% joint venture partner Anshan Iron & Steel Group Corporation (AnSteel).

The substantial increase in the resource is in large part due to depth extensions, with most of the resource model now extending to a depth of 600 metres below surface. Importantly, the 1.853 billion tonne resource is in excess of 75% in the indicated category. There are 1.417 billion tonnes in this category and 437 million in the inferred category.

The remodelled open pit design consists of five stages of development, sequenced to minimize waste removal and produce consistent grade and volume of concentrate. The new design contains 5% more probable reserve, produces 7% more concentrate and requires significantly less waste removal than the original September 2007 pit design.

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