Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 47 Export Park SA 5950 ABN: 96 110 336 733 Tel: +61 8 8375 3900 Fax: +61 8 8375 3999 www.monaxmining.com.au For Immediate Release Monday, 8 May, 01 ASX RELEASE Encouragingg Mannese and Iron Ore drilling results at Waddikee. HIGHLIGHTS 45 holes completed totalling 6 metres High-grade mannese up to 9% Mn reported from Polin prospect Further encouraging iron ore results Monax Mining (ASX: MOX) is pleased to announce the results of its recent drilling program targeting mannese and iron ore at its Waddikee Project in South Australia. The reverse circulation (RC)/rotary air blast (RAB) drilling program was completed in early April and final assay results have now been received. A total of 45 holes were completed for 6 metres. Monax s Waddikee Project is located south of the township of Kimba on the central Eyre Peninsula of South Australia (Figure 1). It is the subject of a farm-in agreement with OM (Mannese) Ltd (OMM), a wholly owned subsidiary of OM Holdings Limited (ASX:OMH). OMM is required to fund A$ million over four years to acquire a 60% participating interest for mannese (Mn) and iron ore on the project. Mannese Results Tank Monax completed a gradient array induced polarisation (GAIP) survey over the Tank prospect in early 01, aimed at defining further possible mannese. Under the current drilling program, Monax completed 19 holes (C 18-00) for 9m at Tank. Figure shows a general location plan for the 01 drilling program. Figure 3 shows in detail the location of all drilling to date within the southern part of the Tank prospect over the newly acquired GAIP data. Drill hole intersections >14% Mn are outlined in Table 1. Holes C 18 187 were drilled to test a moderate chargeable featuree (see Figure 3) whichh previous drilling to the south had intersected moderate mannese. Two holes on the line of recent holes reported one metre intersections of mannese >14% (C 186 & 187). Page 1
Hole C 186 reported 6m @ 1.4% Mn (6-3m) including 1m @ 17.3% Mn (see Table for individual 1m results). Hole C 187 reported 5m @ 14.0% Mn (3-37m see Table for individual 1m results). Holes C 188-191 were drilled to targett a narrow zone of higher chargeability. No significant mannese was reported from these holes. Thesee holes intersected magnetic banded iron formation. Figure 4 shows in detail drill hole locations for the northern part of the Tank prospect. This area contains the majority of the drilling and the best intersections of mannese at the prospect. The GAIP survey at Tank reported some challenges due to chargeable features both on the eastern and western side of the survey area (see Figure 4), which the Company interprets are due to graphite-rich sediments. Holes C 19-194 were targeting a NW trending chargeable zone (Figure 4). No significant mannese was intersected but graphite was reported in holes C 19 (-61m) and C 193 (18-m) (Note downhole lengths, true widths unknown). Holes C 195 197 were targeting a zone of higher chargeability located on the western zone and intersected low grade mannese. These holes also reported minor graphite. Table 1. Drill hole intersections >14% Mn for the 01 Waddikeee drilling program. Hole C186 C186 C186 C187 C198 C198 C04 C04 C04 From (m) 6 9 31 33 1 39 To (m) 3 34 3 31 40 Sample No 6833 6836 6838 6859 68441 6844 6835 683 68337 Fe(%) 4.53 3.9 5. 4.60 13.98.65 7.3 10.54 9.78 Mn(%) 14.1 15.87 17. 0.6 14.11 16.8.67 17.46 1.33 P(%) 0.05 0.04 0.08 0. 0.19 0.17 0.1 0.11 0. m @ 15.5% Mn C05 9 6834.75 14.07 0.15 3m @ 17.6% C05 9 68343 18.0 1.85 0.11 Mn C05 31 68344 31.31 16.95 0.34 C05 C0 C0 48 50 5 53 68348 6847 68474 8.74 18.67 19.88 9.16 14.83 0.93 0.15 0.10 0.10 All samples are 1m samples; samples collected as grab samples. Widths represent downhole lengths, true width unknown. All holes drilled 60 to the west. Samples analysed by Genalysis using XRF. Intersections reported >1m are calculated by averagingg combination of 1m samples. Holes C 198 199 were located on a chargeable feature 550m north of outcropping massive mannese at Cultivator Hill (Figure 4). Hole C 198 reported m @ 15.5% Mn (1-3m). Hole C 00 was drilled to test a chargeable feature on the eastern part of the Tank prospect. No mannese was reported, but minor graphite was intersected between 40-m (Note downhole length, true width unknown). Page
Prior to the current drilling program, Monax had completed drilling 157 holes at its Tank, which is part of the Waddikee Project, for a total of 8778 metres. The best previous drilling resultss for the Tank prospect include (all previously reported): 10m @ 17.5% Mn (C 069 6-36m) 7m @ 18.03% Mn (C 034 14-1m) 7m @ 17.1% Mn (C 11-9m) 5m @ 19.% Mn (C 119 14-19m) 4m @ 3.05% Mn (C 03 4-8m) 3m @.7% Mn (C 036 10-13m) 1m @ 15.3% Mn (C03 4-16m) (holes drilled 60 o ; downhole lengths only, true widths unknown) Polin New information from the GAIP at Polin survey has lead Monax to re-examine previous drilling strategies. Fifteen holes (C 018 C 03) were completed at Polin in April 01 (Figure 5). Holes C 018 0 weree drilled to target a significant chargeable feature. Minor mannese was intersected. Holes C 018 to C 00 all reported thick intersections of graphite schist. Samples from these holes have been submitted for carbon analyses. Drill holes C 03 C 03 were drilledd to test a moderate chargeable feature outlined by the GAIP survey (Figure 5). Holes C 04 and C 05 on the northern line reported mannese e >14% (seee Table 1). Hole C 04 reported 5m @ 15.0% Mn (6-31m) ncluding 1m @.7% Mn (-m see Table for individual 1m results). Hole C 05 reported 3m @ 17.6% Mn (-31m) including 1m @ 1.8% Mn (9-m), and 1m @ 9.16% Mn (48-m see Table 1). Hole C 0 on the southern line reported 4m @ 14.89% Mn (-53m) including 1m @ 0.9% Mn (5-53m see Table for individual 1m results). Prior to the recent drilling program, Monax had drilled 17 holes at its Polin prospect, also part of the Waddikee Project, for a total of 984 metres. The best mannese resultss include: 4m @ 18.9% Mn (C003 3-36m) 4m @ 14.% Mn (C0100 50-54m) (holes drilled 60 o ; downhole lengths only, true widths unknown; results previously reported) Six holes totalling 1 metres were drilled at the prospect in 011 to follow up high grade surface samples grading up to 37% Mn. A further eleven holes for 0m were completed at the prospect. No mannese was intersected with minor graphite reported in several holes. Iron Ore Results The drilling program also returned encouraging iron ore results from the Tank and Polin prospects. At the Tank prospect, the best results include (see Table 3 for fulll results): m @ 4.3% Fe (C 191 1-m) 14m @.1% Fe (C 188 14-m) 1m @ 3.7% Fe (C 190 3-35m). The best results from the Polin prospect include: 6m @ 41.5% Fe (C 0 4-m) m @ 5% Fe (C 0 37-65m) 1m @ 9.4% Fe (C 06 5-46m). Page 3
(Note: Intersections calculated by averagingg combination of 1m samples; m and 4m Intersectionss represent downhole lengths, true widths unknown). composites; General In summary, the drilling program has provided further encouraging g mannese and iron ore resultss and additional evidence supporting the previously announced graphite potential of the Waddikee Project. The GAIP survey encountered zones of high chargeability on both the west and east margins of the main mannese corridor. The eastern zone of high chargeability appears to be related to the Surloaf Hill zone of high chargeability, which is most likely due to the presence of graphite. Drill holes within the zones of high chargeability on the eastern side of Tank reported graphite. The GAIP survey provided some encouragement at the Polin prospect with drilling on the southern area whichh contained a zone of moderate chargeability reporting mannese (Figure 5). Consistent with the GAIP survey, drilling on the northernn highly chargeable feature reported graphite. The GAIP survey dataa will be useful in the search for graphite on the tenement and together with the existing Monax airborne electromagnetic data will be a major tool used in planning the upcoming graphite drilling program. Monax is currently assessing alll drilling data and will meet with its farm-in partner OMMM in the coming months to discuss the next phase of mannese exploration Monax Managing Directorr Mr Gary Ferris said. We are encouraged by the drilling resultss and believe that the GAIP survey will assist with future exploration for both mannese and graphite on our Waddikee tenement he said. Gary Ferris Managing Director, Monax Mining Ph: (08) 8375 3900 Email: info@ @monaxmining.com.au Duncan Gordon Investor Relations Ph: 0404 006 444 The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves Mr Ferris consents to the inclusion of the information in this report in the form and context in which it appears. Figure 1. Location of the Waddikee Project, central Eyre Peninsula. Page 4
Figure. Location of 01 drill holes (white dots) on background of total magnetic intensity image. Page 5
Figure 3. Tank south area. Drill hole location on GAIP chargeability data. (Red represents zones of high chargeability; purple-blue represent zones of low chargeability) Page 6
Figure 4. Tank north area. Drill holes located on GAIP Chargeability data. Page 7
Figure 5. GAIP chargeability data and drill hole location for Polin prospect. Page 8
Table. Sample intervals and results for intersectionss reported in text which include 1m samples reporting <14% Mn (6% Mn cut-off used) Hole C186 C186 C186 C186 C186 C186 C186 C187 C187 C187 C187 C187 C04 C04 C04 C04 C04 C0 From(m) 6 9 31 3 3 33 34 35 36 6 9 To(m) 9 31 3 333 333 34 35 36 37 9 31 50 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Sample No 6833 6834 6835 6836 6837 6838 6839 6858 6859 6860 6861 686 6834 6835 6836 683 683 68471 Fe% 4.53 5.05 4.41 3.9 8.5 5. 3.13 8.1 4.60 8.11 7. 11.97 31.31 7.3 15.93 15.91 10.54 9.75 Mn% 14.1 10. 9.53 15.87 6.8 17. 9.4 13.35 0.6 13.56 11.83 10.67 10.07.67 9.71 9.13 17.46 11.35 P% 0.05 0.04 0.03 0.04 0.0 0.08 0.07 0.6 0. 0.4 0. 0. 0.18 0.1 0.1 0.16 0.11 0.07 6m @ 1.4% Mn 5m @ 14.0% Mn 5m @ 15.0% Mn C0 50 1 6847 18.67 14.83 0.10 C0 5 1 68473 17.3 1.45 0.05 4m @ 14.89% Mn C0 5 53 1 68474 19.88 0.93 0.10 All holes drilled 60 o to the west. Drilling combinationn of reverse circulation and rotary air blast. Drill hole sampless collected every one metre and geochemical samples comprised grab samples. Intersections calculated by averaging combination of 1m samples. Samples analysed by Genalysis using XRF. Downhole lengths only, true widths unknown. Table 3. Sample intervals and results for iron intersections reported in text whichh include combinationn of 1m, m and 4m composite samples ( 0% Fe cut-off used) Hole C188 C188 C188 C188 C188 From(m) 14 16 18 0 To(m) 16 18 0 4 Sample No 680 681 68 683 684 Fe% 3..61 6..47 4..81..61 3..14 Mn% 0.45 0.77 1. 1.93.91 P% 0.33 0.33 0.19 0.31 0.41 14m @.1% Fe C188 C188 C190 C190 C190 C191 C191 C191 C191 C191 C191 C191 4 6 6 3 31 31 35 1 5 5 9 9 33 33 37 37 41 41 45 45 685 6.. 1.84 0.4 686..90 1.34 0.47 4 6890 5..85 0.1 0.56 4 6891 5..00 0.3 0.54 1m @ 3.7% Fe 4 689 0.. 0.38 0.57 4 6894.. 0.5 0.66 4 6895 5..79 0.5 0.63 4 6896 6..79 0.77 0.64 4 6897 3..46 0.41 0.59 m @ 4.3% Fe 4 6898 0.. 0.61 0. 4 6899..59 0.15 0.68 4 680 3..98 0.13 0.57 Page 9
Hole C06 C06 C06 C06 C06 C06 C06 From(m) 5 6 9 3 To(m) 6 9 3 34 1 1 1 1 1 Sample No 68364 68365 68366 68367 68368 68369 68370 Fe% 5..79..65 31.. 31..40 31..15.. 6..46 Mn% 6.3 4.87 6. 3. 1.68.37 5.99 P% 0.17 0.3 0.14 0.19 0.1 0.18 0.0 1m @ 9.4% Fe C06 C06 C06 C06 C06 C06 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 34 36 38 40 4 44 37 39 41 43 45 47 53 55 57 59 61 63 4 8 1 16 0 4 36 38 40 4 44 46 39 41 43 45 47 53 55 57 59 61 63 65 8 1 16 0 4 68371 1..1 4.41 0.17 6837 4.. 4.43 0.4 68373 6..3 5.94 0.19 68374 9..93.53 0.31 68375 33..46 3.08 0.33 68376 44..98 0.46 0.38 68385..70.3 0.19 68386 6..61 3.6 0.16 68387 4..99 3.0 0.14 68388 4..80 4.68 0.13 68389 6..1 6.67 0.16 68390 1..91 3.94 0.17 68391 3..10.77 0.16 6839 1..56 1.66 0.0 m @ 5% Fe 68393 4..77 3.75 0.0 68394 4..71 0.46 0.1 68395 4..1 1.81 0.0 68396 34..39 0.5 0.35 68397 3..99 1. 0.15 68398 0..86 1.65 0.1 4 68443 37..84 0.06 0.03 4 68444 41..80 0.06 0.0 4 68445 38..91 0.03 0.03 4 68446 46..45 0.03 0.03 6m @ 41.5% Fe 4 68447 47..31 0.04 0.03 4 68448 44..71 0.05 0.04 C0 684 33..69 0.14 0.08 All holes drilled 60 o to the west. Drilling combinationn of reverse circulation and rotary air blast. Drill hole sampless collected every one metre and geochemical samples comprised grab samples. Intersections calculated by averaging combination of 1m, m and 4m samples. Samples analysed by Genalysis using XRF. Downhole lengths only, true widths unknown. Page 10
Hole ID HR HR HR HR D RC18 RC183 RC184 RC185 RC186 RC187 RC188 RC189 RC190 RC191 RC19 RC193 RC194 RC195 RC196 RC197 RC198 RC199 RC00 RC018 RC019 RC00 RC01 RC0 RC03 RC04 RC05 RC06 RC0 RC0 RC09 RC0 RC031 RC03 RC007 RC008 RC009 RC010 Prospect Hodgi Hodgi Hodgi Hodgi 01 Drill h Ea ns ns ns ns hole detail asting 61778 61795 618 61844 61868 61900 6178 603 6 646 640 6475 656 6310 63147 63173 64004 64043 64000 60196 60176 604 60 6033 609 6095 60978 61001 6109 60977 61050 61018 61005 60974 617645 617668 617707 61774 ls Northin 6938 6193 6938 6938 6938 6938 6947 6947 6947 6947 6981 698 698 6983 6984 6984 6990 6990 6977 648 648 648 648 648 635 635 635 635 635 633 633 63 633 63 6337 6337 6337 6337 g EO 80 3804 805 804 806 803 708 703 703 700 198 00 0 39 403 405 048 048 707 803 800 800 803 80 501 504 505 503 501 1 3 6 0 96 7 74 750 750 OH (m) 45 4 60 31 39 61 46 60 66 48 40 60 67 70 66 3 7 58 81 66 5 Page 11 For personal use only
Hole ID Prospect Easting Northing EOH (m) HRC011 HRC01 HRC013 HRC014 HRC015 HRC016 HRC017 61755 617599 6176 617804 6178 617850 617875 633 63 63 6345 634 63447 63450 46 60 4 50 All holes drilled 60 o to the west. Drilling combination of reverse circulation and rotary air blast. Drill hole samples collected every one metre and geochemical samples comprised grab samples. Datum MGA 94 Zone 53. Page 1