Overview of the Central Yilgarn Iron Project

At a time when iron ore continues to command high levels of interest and strong prices for its fundamental role in a number of expanding economies, the Central Yilgarn Iron Ore Project (CYIP) offers Jupiter exposure to an iron ore exploration prospect in close proximity to established infrastructure including access to a main road and railway transportation (Figure 1).

The project area is still under explored, and Jupiter will be implementing exploration programs to fully test the area's  potential for iron ore mineralization (Figure 2). The CYIP consist of four project area's Mt Mason, Mt Ida, Mt Alfred and Mt Hope-Walling Rock. All four projects 100% Owned by Jupiter Mines. Currently the main projects within the CYIP  -

• Mt Mason 5.75 million tonnes at 59.9% Fe, 3.5% Al2O3, 7.4% SiO2, 0.064% P and 3.0% LOI using a 55% Fe cut-off grade.
• Mt Ida Conceptual exploration Target 1.1-1.3 billion tonne magnetite target 30-40% Fe

Location

The CYIP is located west of Menzies, with the Mt Mason inferred resource being approximately 100km North West of Menzies. Mt Mason tenement M30/408 adjoins the Mt Ida tenement E30/560. The Mt Ida magnetite Prospect is located 15 km south of Mt Mason inferred resource. Mt Hope and Walling Rock sit 67km to south. The project area covers 275km² (Figure 3). The banded iron formations (BIFs) trend North West in sub parallel in multiply sets ranging from 1 to 6 in a set. The all iron mineralization in CYIP is generally hosted within the BIFs.

History

Mt Mason has been known since 1912 when H.W.B. Talbot discovered it. Talbot refers to the mineralization in GSWA Bulletin 45 as "a large mass of fine iron ore" superficial exploration for iron ore and pigment has occurred since then. Russell et al on behalf of BHP in 1970 took 5 surface samples which gave a composite grade of 62.8% Fe with 0.042% P. In 1978 Kalgoorlie Southern Goldmines surveyed a grid, cut some access tracks, mapped part of Mt Mason and drilled 20 shallow percussion holes for iron pigment. No quantitative analyses for iron were recorded for these holes but general descriptions of the cuttings were recorded.

 In 1969, BHP surveyed Mt Mason. This was approximately 60 years after the initially discovered by Geological Survey of Western Australia. Even though high iron assays from the survey returned 62.8% iron with 0.042% phosphorus, BHP did not proceed with the project. Infrastructure in the area was limited at the time. No exploration was carried out for many years in CYIP.

Geology

The Mt Mason-Mt Hope tenement areas cover part of the western edge of the Mt Ida greenstone belt, which lies along the eastern boundary of the Southern Cross Granite-Greenstone Terrain. A large scale regional structure, the Ida Fault, marks the boundary between the Southern Cross Granite-Greenstone and Eastern Goldfields.

The Ida Fault is a complex structure of sinusoidal faulting and shearing with varying stages of deformation throughout the Mt Ida greenstone belt. The western part of the belt, which is partially covered by project tenements, comprises a typical Southern Cross rock association of abundant metabasalt, banded iron formation and subordinated ultramafic rocks. The greenstone exposure around Mt Mason indicates shallow to steep, east dipping units of banded iron formation, with intercalated mafic rocks. Late stage granitoids, pegmatites intrude the sequence. East-west trending dolerite dykes cut across the regional trend.

Mt Mason- typical Banded Iron Formation (BIF) 

Mt Mason Drill Rig in background 

Figure1.  Location Map

 The potential project quantity and grade is conceptual in nature and there has been insufficient exploration to define a total potential mineral resource outside the current JORC compliant inferred Resource at Mt mason (5.75 million tonnes @ 59.9% Fe), and any potential resource at CYIP is conceptual in nature (Mt Ida) and is for exploration purposes only. There has been insufficient exploration and valuation to define total mineral resource for CYIP and it is uncertain if future exploration will result in the determination of a mineral resource

 For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports

Mt Mason

 Jupiter has completed a substantial upgrade in the high grade hematite resource at its 100%-owned Mt Mason Project to 5.75 million tonnes at 59.9% Fe, 3.5% Al2O3, 7.4% SiO2, 0.064% P and 3.0% LOI using a 55% Fe cut-off grade.

Importantly the resource remains open to the north-east and further scope exists for extensional drilling. The resource model will require infill drilling to upgrade the current inferred Resource to indicated and measured categories. Drilling by Hawthorn Resource drilling confirms the Mt Mason mineralization extends into the adjoining license.

In total holes, 67 holes of RC drilling have been completed totaling 3388 metres, (includes all historical holes) the drilling generally displayed thick occurrences of massive hematite /maghematite and/or hematititic BIF

Some magnetite was also seen, with a few holes intersecting basement ultramafic rock. the upgraded resource represents a 160% increase over the previous inferred resource announced in October 2007, and was the result of a very successful drill program which included significant intersections (holes 08RCmm09 (61m @ 65.5% Fe from 16m), 08RCmm013 (64m @ 60.6% Fe) and 08RCmm014 (64m @ 60.5% Fe) (Figure2)

Several internal shale units have been identified within the resource which have been excluded from the current resource estimate and reported as a separate material due to their close relationship with the mineralisation.

Photograph 1. Mt Mason high grade hematite outcrop

The potential project quantity and grade is conceptual in nature and there has been insufficient exploration to define a total potential mineral resource outside the current JORC compliant inferred Resource at Mt mason (5.75 million tonnes @ 59.9% Fe), and any potential resource at CYIP is conceptual in nature and is for exploration purposes only. There has been insufficient exploration and valuation to define total mineral resource for CYIP and it is uncertain if future exploration will result in the determination of a mineral resource.

Figure 1. Mt Mason Drill Hole Locations

 Mining Consultant - David Milton (Mt Mason Inferred Resource) Competent Person

 The information in this report that relates to Mineral Resources of Mt Mason is based on information compiled by Mr. David Milton, who is a Member of the Australian Institute of Mining and Metallurgy and a full time consultant.  Mr. David Milton has sufficient experience in the type of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the December 2004 Edition of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.

For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports

Mt Ida

 The main Mt Ida magnetite target has been estimated to be between 1,100 and 1,300 million tonnes at an expected grade between 30 to 40% Fe. Recent geological mapping and Reverse Circulation drilling has shown intersection widths and grades comparable to support the estimate (see Figure 1& 2).

 The estimate was calculated by BM Geological Services using the results from the 2008 and 2009 Reverse Circulation drilling program and recent field mapping completed by Jupiter. Table 1 below shows the target tonnage of the Mt Ida Project. The estimate is conceptual in nature and is not an indication of a mineral resource built in line with the guidelines of JORC 2004.

Table 1 Global Iron Mineralisation

Figure 1.  3D Image of Total Magnetite Intensity (TMI) Map

The potential quantity and grade of the Mt Ida Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Figure 2. Drill Hole Highlights of Mt Ida RC Drill Programs

 Davis tube testing is used to separate ferromagnetic and non-magnetic fractions in small samples of approximately 20g at a time. this method is ideally suited to establishing the recoveries likely from a magnetic separation process. Davis Tube Test results are in Table 2 and initial metallurgical test work has generated good results with 70%+ Fe in the final product with weight recoveries between 37-47%.

Table 2. Results of Davis Tube testwork on three samples from drill hole 08RCM1989  

Detailed geological mapping of the central portion of the Mt Ida Project area completed during the year confirmed the fact that the banded iron formation exposed along the western margin of the Mt Ida range occurs as two or three, gently easterly dipping, relatively thick units separated by thinner intercalations of metasedimentary or metavolcanic material. The BIF units can aggregate to over 70m in thickness (Photograph 1) (Figure 3).

Photograph 1.

View of Mt Ida lowest western BIF unit looking east. Photograph was taken from the road at approximately 6763000N. Note gentle easterly dips at 20 to 40 degrees and an estimated thickness of 45 metres.

This comprises one of the transects that was continuously rock chip sampled down the near vertical face

 
Figure 3. Mt Ida Project. Geological conceptual cross-section of central part of Mt Ida.

 
Figure 4. Mt Ida magnetite Cross Section

The potential quantity and grade of the Mt Ida Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

    For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports

Mt Alfred

 Location and access

The Mt. Alfred tenement is located 135 km northwest of Menzies and 260 km north of Southern Cross in the Central Yilgarn. Access from Kalgoorlie is via the sealed Wiluna Road to Menzies and then by the formed Menzies-Sandstone road that traverses the tenement from north to south. Access within the project area is via pastoral station tracks.

Project Geology

The geology of the Mt. Alfred tenement is dominated by Archaean greenstone belts

(The Illaara belt to the east and the Mt. Marmion belt to the west) and constitutes an

interlayered metamorphosed sequence of greywacke sediments, BIF, basic and acid volcanic rocks, together with coarse-grained basic and ultramafic intrusive rocks. Granite lithologies bound the eastern and western margins. Folding is ubiquitous in the BIF and is represented by major flexures of the whole units about a south-plunging axis and by small scale folds intraformational to the fine scale layering.

 Eastern parts of the tenement include multiple BIF horizons which cover 14km of strike and form a prominent line of north striking hills that rise to a maximum height of 90m above the surrounding plain level. BIF units are between 15m and100m wide and are easily accessible from nearby station tracks. Banding alternates between iron-rich (magnetite/hematite/goethite) and siliceous (chert/quartz) material with layers varying along a mm scale to cm scale. Much of the tenement is under cover both transported and locally derived.

 In the northern section of the licence a series of ultramafic rocks show occasional contact with narrow banded ironstones. A similar contact north of Laverton hosts the Mt Windarra nickel occurrence

 Mt Alfred was drilled in 2010 program Included 11 RC angled drill hole for a total of 1195m.  The drill program intercepted magnetite BIF units of varying down hole intercept widths from a few metres to over 136m(Figure1).  The best down hole intercepts were from hole MA 11 (56M @32% Fe from 6m) and MA2 (136m @ 33% Fe from 28m). Table 1 contains the highlights from the drill program and drill collars are in table 2.  Drilling confirmed that magnetite BIF persisted at depth, that the iron grade is generally between 25-35% Fe with peak values of 54.2% Fe (MA16 34-36m down hole depth)

Figure1. Mt Alfred Schematic Cross-section

Table 1 Highlights OF Mt Alfred RC Drill Program

Note weighted average with 29 % Fe CUT OFF GRADE and 4m  of dilution

Figure 2.  Drill hole location Plan and Geology Map

 For the latest information on this project, please refer to the Investor Centre on this website; ASX Announcements and Quarterly Reports