Chinese fund new feasibility study

Date: 15th December 2009

Project: Bungalow

Organisation: Centrex Metals

ASX: CXM

Highlight: $40 million to be spent on drilling and feasibility study

Best contact person for project work: Kevin Malaxos – Chief Operating Officer 08 8232 0400

 

The deal Centrex has struck is with Baotou, China’s 10^th largest steel maker. The deal surrounds the Bungalow iron ore project which has been identified as highly prospective by preliminary exploration. Baotou will acquire a 50% stake in the project in exchange for $40 million. The funds will be used to finance further exploration and a bankable feasibility study.

Centrex intends to undertake a 5,000m diamond drilling program and needs to establish a core yard and lease accommodation at the site as soon as possible to begin the study. This project provides an opportunity for:

• Camp construction
• Drilling equipment and management
• Equipment hire 
• Project management 
• Geological services
• Griding & surveying
• Soil sampling
• Logistics management
• Safety Services

For more information visit:

www.centrexmetals.com.au/images/asx_releases/asx_release77.pdf

www.centrexmetals.com.au/images/asx_releases/asx_release78.pdf