Icon Resources Mt Carbine Progress

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2nd December 2009, 06:39pm - Views: 902

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Icon Resources Ltd 

ACN 115 009 106

Suite 404, 25 Lime Street, Sydney NSW 2000.  Telephone: +61 2 9279 1252  Facsimile: +61 2 9279 2727

2nd December, 2009

ASX Announcement

Mt Carbine Activities Update and Capital Raising 

Icon Resources Ltd (‘Icon’) is pleased to provide the following update on the Company’s activities.

Key Points

Mt Carbine Tungsten Project

Assaying of mineralised core from the upper portion of legacy drillhole CB18 has been completed.

This is the only drillhole intersecting the Iron Duke mineralisation and the results indicate significant

widths of relatively high grade mineralisation including 8m @ 0.36% WO3 within 27m averaging

0.14% WO3 from 105m and 18m @ 0.37% WO3 within 47m averaging 0.23% WO3 from 163m.

Drilling is scheduled to commence at Iron Duke in December.

This drilling together with further assaying of the legacy drillcore will be used to update the resource

model for Mt Carbine in 1H10.

Capital Raising

The company is finalising a capital raising of approximately $1.5M. The terms of the placement are

$0.09 per share with an attaching $0.15c option expiring on 30 June 2011.

Managing Director Dr John Bishop said: “The assaying of CB18 has highlighted the potential for relatively

high grade scheelite-rich mineralisation adjacent to the open cut. Given the generally persistent and consistent

nature of the Mt Carbine mineralisation, we are hopeful that our forthcoming drill program will add depth and

strike length to this historic drillhole. Most of the recently raised funds will go towards advancing Mt Carbine,

but a small proportion will be spent on drilling our Tara Tin and Peel Fault Gold projects early in the new


MT CARBINE:  Tungsten, North QLD (III 100% ownership of mineral rights)

Tenements: Granted Mining Leases MLs 4867, 4919

Target:  Bulk tonnage wolframite-scheelite in sheeted quartz veining.

Most of the core from drilling before and during the previous mining operation at Mt Carbine is still preserved

on site. The grades of the mineralised sections were originally only visually estimated* and Icon is now in

process of assaying selected core by laboratory X-Ray Fluorescence (XRF).

Assaying of the first batch of core, including the upper portion of drillhole CB18, which intersected the

scheelite-rich Iron Duke Lode, has been completed. CB18 was visually estimated to contain two zones of low

grade mineralisation averaging 0.10% WO3. XRF assaying has produced much higher values, with the upper

chert horizon returning 8m at 0.36% WO3 within 27m averaging 0.14% WO3 from 105m, and the lower

metabasalt 18m @ 0.37% WO3 within 47m averaging 0.23% WO3 from 163m.

These grades are significantly higher than the assumed overall grade of mineralisation at Mt Carbine.

Historical mapping show the Iron Duke workings having a strike length of 400m and the CB18 intercept

suggests that mineralisation may extend over widths exceeding 50m. Given that the mineralisation at Mt

Carbine mined to date has been remarkably spatially persistent and consistent in grade, this previously under-

estimated lode will be given first priority in Icon’s drilling campaign.

* Queensland Wolfram P/L, operators of the mine in the 1970s and ‘80s, used visual estimation of grade for their diamond core

rather than laboratory assay in the belief that using all of the surface area would be more effective than assaying half of the

volume. This approach appears to have provided reasonably adequate estimates of grade in those parts of the deposit dominated

by wolframite, but not where scheelite dominated.

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Icon Resources Ltd

Exploration Update


Capital Raising

Approximately $1.5M is being raised in a two-tranche placement through broker Martin Place Securities

Limited and several private investors. The terms of the placement are $0.09 per share with an attaching

$0.15c option expiring on 30 June 2011. The first tranche will be completed this week to raise

$1,006,251 by issuing 11,180,570 shares in accordance with ASX listing rule 7 (15% rule). A further

$546,249 will be raised, and all of the options issued, following shareholder approval at a General

Meeting scheduled for 12th January, 2010.

The funds raised will be primarily used to progress the Mt Carbine pre-feasibility study, including an

initial drilling program of around 5000m and testing of bulk samples through the process flow sheet.

This program has already commenced with the first batch of ore samples having been sent for testing in

multi-parameter oresorters.

Dr John Bishop 

Managing Director

Information in this report that relates to Exploration Results is based on information compiled by Dr John Bishop,

who is a member of the Australian Institute of Geoscientists. John is a full-time employee of Icon and has sufficient

experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is

undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves”.Dr Bishop consents to the inclusion in the

report of the matters based on his information in the form and context in which it appears.

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