🕐15.12.09 - 05:16 Uhr

Reed Resources Ltd [RDR] - Maiden Iron Ore Resource Announced at Mt Finnerty Iron JV



ABN 89 099 116 631
Reed Resources Ltd
97 Outram Street
West Perth WA 6005
Tel: + 61 8 9322 1182
Fax: + 61 8 9321 0556
ASX announcement 15 December 2009
JV partners confirm 4.66 Mt maiden iron ore resource at Mt
Finnerty iron ore project in WA - exploration activities to
increase
HIGHLIGHTS
• Maiden JORC Code compliant resource (Inferred) of 4.66 Mt (average grade 53.5% Fe)
delineated at Mt Finnerty iron ore project in Western Australia,
• The Inferred resources at the Mt Finnerty prospects have provided sufficient
encouragement to progress exploration of other targets, including some identified from
a recent geophysical review, and
• Mt Finnerty is held under a JV agreement, with Cliffs Asia Pacific Iron Ore Pty Ltd
holding 80% and Reed Resources Limited holding the remaining 20%.
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the "Company" or
"Reed") has, together with Joint Venture partner Cliffs Asia Pacific Iron Ore Pty Ltd ("Cliffs"),
delineated a maiden JORC Code compliant resource at the Mt Finnerty project in Western
Australian that gives sufficient encouragement to progress exploration of other targets at
the project.
The Mt Finnerty iron ore project (Figure 1) is located 65 km east of the Koolyanobbing town
and mine sites operated by Cliffs Natural Resources.

Cliffs have earned an 80% interest in
the iron rights at Mt Finnerty, with the remaining 20% stake held by Reed.
The combined Inferred Mineral Resources at the FIN9 and FIN10 prospects is 4.66 Mt at an
average grade of 53.5% Fe, for a lower cut‐off grade of 50% Fe, and with significantly low
levels of phosphorous (P) and sulphur (S).
Cliffs have also completed a full geophysical review of the Mt Finnerty JV project, which has
identified several new iron ore targets currently being assessed through field inspections.
Reported tonnes and grades of Minerals Resources at each of the prospects are listed in the
following table at lower cut‐off grades of 50% Fe and 58% Fe (details of Resource estimation
is provided in Appendix):
Prospect Cut‐off
grade
(% Fe)
Tonnes
(‘000)
Fe
%
SiO2
%
Al2O3
%
P %
S %
Mn
%
LOI
%
FIN9 50 2580 54.1 9.4 3.8 0.10 0.17 0.43 7.9
58 30 58.2 4.8 3.1 0.11 0.16 0.15 7.7
FIN10 50 2080 52.9 9.9 5.3 0.06 0.12 0.07 8.3
58 110 58.4 5.0 3.7 0.06 0.15 0.03 7.2
Resource tonnage and grade estimates comply with the JORC Code (2004) and are all assigned to the Inferred
Resource category (Appendix).
Resources at each prospect are for goethitic mineralisation in supergene‐enriched banded
iron formation (BIF).

The predominance of goethite is reflected by the relatively high LOI
(loss on ignition) content of the resources.

The resource at FIN10 is more complex than FIN9
with indications of hematite mineralisation..
The FIN9 resource is based on 34 Reverse Circulation (RC) drill holes and the FIN10 resource
is based on 36 RC drill holes, both prospects drilled on a nominal 50m by 100m grid pattern.
The grade estimation model for FIN9 extends 700 metres along the north‐northwest strike
of the mineralisation over 10 to 50 metres in thickness and to a depth of up to 70 metres
below surface.

The FIN10 resource model extends for 800 metres along the north‐northwest
strike over a similar thickness and to a depth of up to 60 metres below surface.
Additional RC drilling at the FIN11 prospect (10 holes, 1269m) has indicated iron
mineralisation (>50% Fe) is in narrow zones of shallow surface enrichment and does not
warrant a Resource estimation at this stage.
Forward work program
The Inferred resources at the FIN9 and FIN10 prospects have provided Cliffs with sufficient
encouragement to progress exploration of other targets, including some of those identified
from the recent geophysical review.

The initial target continues to be iron mineralisation
comparable in size to the Carina deposit along strike to the north of the Mt Finnerty project.
Ends
For further information contact:
Reed Resources
Chris Reed
Managing Director
Tel: 08 9322 1182
Media
David Tasker
Professional Public Relations
Tel: 9388 0944/ 0433 112 936
Em:
About Reed Resources
Reed Resources Ltd is a diversified mining and exploration Company based in Western
Australia.

It has modest gold production and is expanding and diversifying its production
base.
Reed Resources has five main projects (all in Western Australia) including;
• Mount Marion - High‐grade Lithium project located about 40km south of Kalgoorlie
in JV with Mineral Resources Ltd.
• Comet Vale - High‐grade underground gold mine in JV with Kingsrose Mining
Limited (until 31 May 2010).
• Barrambie - Definitive Feasibility Study completed on a Ferrovanadium operation to
produce 6300t of vanadium per annum.

Currently in approvals process.
• Mount Finnerty - Iron ore JV with Cliffs Natural Resources & Nickel Farm‐out
Western Areas NL.

A Nickel Farm‐in with Barranco Resources NL
• Bell Rock Range - Nickel‐Copper‐PGM JV with Anglo American Exploration.
Website: www.reedresources.com
Figure 1: The Mt Finnerty project with the location of the FIN9, FIN10 and FIN11
prospects.
Competent Person Statement
Geological aspects of this report that relate to exploration results have been compiled by Dr Peter
Collins (MAIG), a Director of Reed Resources Ltd.

Dr Collins has sufficient experience relevant to the
style of mineralization and type of deposit under consideration and to the activity which is being
reported on to qualify as a Competent Person as defined in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (2004).

Dr Collins consents to the inclusion in
this report to matters in the form and context in which it appears.
Mineral Resource estimation has been compiled in accordance with the guidelines outlined in the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code, 2004) by Leonora Hackman and Duncan Hackman of Hackman and Associates Pty Ltd.
Leonora Hackman is a member of the Australasian Institute of Mining and Metallurgy and Duncan
Hackman is a member of the Australian Institute of Geoscientists.

Both have sufficient experience
relevant to the style of mineralization and type of deposit under consideration and to the activity
undertaken to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Leonora Hackman and
Duncan Hackman consent to the inclusion of the Mineral Resource estimations in the form and context
in which it appears.
Although Reed remains optimistic about the potential of the Mt Finnerty project, any reference to the
terms "ore" and "high‐grade" in this report is conceptual in nature.

Use of the term "grade(s)" is not
intended to represent the grade of a Reserve.
Appendix: FIN9 and FIN10 Mineral Resource Estimation Parameters
Mineral Resource estimation has been compiled in accordance with the guidelines outlined in the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code, 2004) by Hackman and Associates Pty Ltd for Cliffs Asia Pacific Iron Ore Pty Ltd.
The resource model is based on a database and geological and mineralisation interpretation by Cliffs
Natural Resources Pty Ltd (CNR), and TIN modelling Hackman and Associates Pty Ltd (H&A).

Block
model construction and grade estimation were undertaken by Duncan Hackman, in consultation with
Leonora Hackman of H&A.
The FIN9 resource estimate is based on 1909 two‐metre composite sample data from 34 Reverse
Circulation (RC) drill holes on a nominal 50m by 100m grid pattern.

179 composites are located within
the interpreted goethite mineralised domain and form the basis of the grade estimate.

The grade
estimation model extends 700m along the north‐northwest strike of the mineralisation and full
thickness of the interpreted mineralised domain (ranges between 10m and 50m in thickness).
The FIN10 resource estimate is based on 1751 two‐metre composite sample data from 36 RC drill
holes on a nominal 50m by 100m grid pattern.

185 composites are located within the interpreted
goethite mineralised domain and form the basis of the grade estimate.

The grade estimation model
extends 800m along the northerly strike of the mineralisation and full thickness of the interpreted
mineralised domain (ranges between 10m and 50m in thickness).
Analytical quality control data shows that the assay data is suitable for use in the resource estimates
and that there are no limiting factors for consideration when classifying the resources under the JORC
Code (2004).

The inverse distance squared (ID2) estimation method was employed for grade
interpolation.

Composite and block grades reconcile adequately for the estimate to be considered
robust at a global scale.

Tonnage factors of 3.00 g/cc (Fe grade <58 %) and 3.35 g/cc (Fe grade >/=58
%) were used for the estimation model.
Classification of the resource is based on data density, data quality, confidence in the geological
interpretation and confidence in the estimation.

Key factors considered in assigning an Inferred
Resource classification under the JORC Code (2004) guidelines include confidence in geological and
grade continuity (and extents) due to the underlying drilling configuration and method (RC), which
impinge on logging reliability underpinning structural and geological interpretations; reliability of and
method of applying the tonnage factors; and perceived low confidence in local estimates caused by
the above factors and the interpolation parameters utilised in estimating grades from this data.

The
standard of input data and information is sufficient to classify the resource at the level of an Inferred
category.




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