Golden West Resources has begun a major resource definition program at the Wiluna West Iron Ore Project with the aim of increasing total resources to more than 100 million tonnes and converting this to a mining reserve.

Wiluna West is one of the largest high grade iron ore discoveries made in Western Australia’s Mid-West region and has a JORC inferred resource estimate of 86.3 million tonnes grading 60.1% iron.

Golden West has cash reserves of about $32.7 million, sufficient to fully fund an aggressive exploration program and accelerated project development studies in the next 18 months.

An updated resource estimate is scheduled for completion in the June quarter and this is expected to increase the resource to in excess of 100 million tonnes grading about 60% iron.

The reverse circulation and diamond drilling campaign will be expanded to involve three RC drill rigs and one diamond rig. This will start as soon as final approvals have been received from the WA Department of Resources and Industry.

The drilling program will comprise 62,000 metres of RC drilling in 650 holes, primarily targeting areas of known mineralization to generate additional resources and reserves.

Golden West has sought approvals for a pilot mining program to extract a bulk ore sample of 1 million tonnes from the project to allow market testing by prospective customers. It is expected it will take about 6 months to complete the ore stockpile.

A strategic planning report has been completed that identifies the required stages of development to ensure that a 10 million tonne per annum iron project will be operational by mid 2011.

A program is being developed to source professional expertise on different aspects and it is anticipated a preliminary report will be completed by mid-year. Detailed environmental mitigation and management planning will then begin with a formal bankable feasibility study.

www.goldenwest resources.com