Midwest Corp increases Weld Range iron ore resource

Takeover target Midwest Corporation Limited has announced a 17 per cent increase in the total estimated mineral resource inventory at its flagship iron ore project at Weld Range, but has a long way to go before reaching its target resource.

Midwest has increased total Mineral Resource by 19 million tonnes (mt) to 133.4 mt at an average grade of 58.5% Fe, using a cut off grade of 50% Fe.

The increase in total estimated Mineral Resource results from ongoing resource drilling programmes at the Weld Range DSO (direct shipping ore) Project deposits.

Midwest Chief Executive Officer, Mr Bryan Oliver, said: "These results continue to confirm the basis for Midwest's proposed expansion of hematite iron ore sales through the joint development of the Weld Range DSO Project in conjunction with Sinosteel Corporation."

"We remain on course to achieve our minimum target of 225 mt (details of which are set out in the Midwest Target's Statement) to underpin the development of Weld Range and also the associated rail and port infrastructure," he said.

This update relates to mineralised lenses at the Madoonga and Beebyn hematite deposits, which lie within tenement TR 70/3902H under the Iron Ore (Murchison) Agreement Act (WA) 1973 (the State Agreement Act) and at the Beebyn North hematite-goethite deposits, which lie within E51/907.

The previously stated estimated Mineral Resource of 114.3 mt at an average grade of 58.7% Fe related only to the W14 lens at Madoonga and the W7 to W11 lenses at Beebyn. As part of the Weld Range DSO Joint Venture studies with Sinosteel Corporation, geological models have been developed for the W30, W31 and W45 hematite-goethite ore lenses at Beebyn North generating new additional Inferred Mineral Resource totalling 19.0 mt at an average grade of 57.3% Fe (using a 50% Fe cut-off grade). These deposits were drilled in the second half of 2007.

The separate W30, W31 and W45 lenses at Beebyn North are all 400-500m long in strike and have been targeted to a depth of approximately 100m vertical from natural surface. Additional infill, extensional, and drilling to greater depth has been planned for all lenses to both upgrade Mineral Resource at Beebyn North and increase confidence in their JORC classification category.

Many other substantial prospective iron ore lenses in the Weld Range tenements remain undrilled at this stage, due mainly to a focus on resource development drilling programmes required over the Madoonga and Beebyn deposits ahead of a Pre-feasibility Study due by the end of September 2008.

Midwest has scheduled 40,000m of drilling during the remainder of 2008 in TR70/3902H and other tenements at Weld Range, including sections falling within the Hampton Hill JV areas.

Technical details of the updated Mineral Resource estimation are outlined below. These statements supersede all previous Mineral Resource estimates for the Weld Range DSO Project and are based on geological and mineralisation interpretations completed for the individual deposits up to 31 December 2007.

On 18 January 2008 Midwest announced its accelerated drilling programme at Weld Range was progressing well, with four drilling rigs currently in operation and plans to increase this to seven rigs by March 2008.

Midwest is also progressing high potential iron ore projects in proximity to Weld Range at Jack Hills and Robinson Range, as well as Koolanooka/Blue Hills and Koolanooka magnetite further south in the mid west region of Western Australia.