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Mt Marion resource definition drilling results



ABN 89 099 116 631
Reed Resources Ltd
97 Outram Street
West Perth WA 6005
Tel: + 61 8 9322 1182
Fax: + 61 8 9321 0556
ASX Announcement 18 January 2010
Resource drilling at Mt Marion Lithium Project yields
positive results - production plans on track
HIGHLIGHTS
􀂾 Phase 1 resource definition drilling (139 holes) confirms multiple,
stacked, high‐grade pegmatites at the Nos 1, 2 and 2W Deposits.
􀂾 Average intercepts of high‐grade mineralisation is 9.2 m at 1.52 % Li2O
and 1.4 % Fe2O3, using 0.6 % Li2O lower cut‐off grade.
􀂾 Three additional pegmatite prospects delineated, including the 1W and
5 prospects.
􀂾 Phase 2 resource extension drilling underway (45 holes); planned for
completion by end of January 2010, and
􀂾 Resource estimate planned for completion by April 2010
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the "Company" or
"Reed"), together with joint venture partner Mineral Resources Limited (ASX: MIN)
("Mineral Resources"), continue to advance the Mount Marion Lithium Projec t, located in
the goldfields region of Western Australia (refer Fig 1), towards a 2010 production
start‐up, with completion of the Phase 1 resource definition drilling program to extend the
current resource at the No.1, No.2 and No.2W Deposits.
The first phase of resource definition Reverse Circulation (RC) drilling was completed
at Mt.

Marion during November‐December 2009.

A total of 139 vertical holes were
drilled for an aggregate of 7,002 metres at three of the six known deposits on the
Mt.

Marion tenement (Figure 1).

Spacing of the drill holes ranged from 30m x 30m
to 80m x 40m.

At the No.1 and No.2 Deposits the average depth of the holes was 40
metres (Figure 2).

The depths of the holes drilled at the No.2W Deposit (Figure 3)
averaged 75 metres with the deepest hole being 152 metres.
At a cut‐off grade ("COG") of 0.6 % Li2O the average thickness of the intercepts is 9.2
metres at a grade of 1.52 % Li2O and 1.4 % Fe2O3.

If the cut‐off grade is lowered to
0.4 % Li2O the average width of mineralised intercepts is 10 metres at a grade of 1.44
% Li2O and 1.5 % Fe2O3, demonstrating the sharp, natural cut‐off of the high‐grade
mineralisation.

Intercepts of 10 metres or greater, at a COG of 0.6 % Li2O, are listed
in Table 1.

All intercepts at a COG of 0.4 % Li2O are included in Appendix A for the
three deposits that have been drill tested.
Figure 1 Mount Marion pegmatite group within the northern half of mining lease
M15/1000.
Figure 2 Cross section (B‐B" in Figure 1) in the central part of the No.1 Deposit
(interpretation by Bryan Smith Geosciences).
The structure of the pegmatite deposits is relatively simple, forming a series of subparallel
stacked sills that dip at 10‐20 degrees to the west.

Lithium is entirely
contained in spodumene crystals and the lithium grade is relatively constant through
the pegmatite bodies (cf Figures 2, 3).

The pegmatites are comprised generally of
spodumene (20‐40 % by volume), quartz (25‐30 %), feldspar (20‐25 %) and
muscovite (about 10 %).

Some of the spodumene crystals are more than 30 cm long.
Table 1 High‐grade intercepts (>0.6 % Li2O) with a down‐hole length in excess of 10
metres (full details in Appendix A).
DEPOSIT HOLE_NO FROM TO Interval Li2O Fe2O3
m m m % %
No.1 MMP 124 9 22 13 1.60 1.40
No.1 MMP 132 6 26 20 1.55 1.03
No.1 MMP 133 18 34 16 1.38 1.09
No.1 MMP 134 18 37 19 1.53 0.99
No.1 MMP 135 0 20 20 1.62 0.81
No.1 MMP 136 15 32 17 1.39 0.88
No.1 MMP 137 18 38 20 1.28 0.92
No.1 MMP 139 0 19 19 1.23 1.25
No.1 MMP 140 11 24 13 1.48 1.14
No.1 MMP 141 18 40 22 1.78 1.31
No.1 MMP 145 17 40 23 1.50 1.31
No.1 MMP 146 0 10 10 1.00 0.97
No.1 MMP 147 0 14 14 1.71 0.99
No.1 MMP 148 4 25 21 1.71 1.15
No.1 MMP 149 38 48 10 1.98 1.19
No.1 MMP 151 0 15 15 1.81 1.20
No.1 MMP 152 38 49 11 1.37 1.02
No.1 MMP 154 0 14 14 1.53 1.32
No.1 MMP 155 16 30 14 1.40 1.08
No.1 MMP 158 1 14 13 1.40 0.99
No.1 MMP 159 20 30 10 1.41 1.34
No.1 MMP 169 47 57 10 1.84 1.88
No.1 MMP 170 30 52 22 1.50 1.15
No.1 MMP 171 22 43 21 1.80 1.27
No.1 MMP 181 51 65 14 1.63 1.19
No.1 MMP 182 55 68 13 1.77 1.61
No.1 MMP 184 68 79 11 1.94 1.19
No.1 MMP 188 15 29 14 1.56 0.93
No.1 MMP 189 33 43 10 1.55 1.52
No.1 MMP 190 3 16 13 1.45 0.92
No.2 MMP 202 55 65 10 1.72 1.22
No.2 MMP 203 0 10 10 1.45 1.26
No.2 MMP 207 15 25 10 1.63 1.78
No.2 MMP 215 42 53 11 1.62 1.25
No.2 MMP 217 30 41 11 1.54 0.98
DEPOSIT HOLE_NO FROM TO Interval Li2O Fe2O3
m m m % %
No.2W MMP 101A 67 92 25 1.64 1.25
No.2W MMP 102A 46 62 16 1.61 1.53
No.2W MMP 301 9 20 11 1.42 1.71
85 113 28 1.61 1.14
No.2W MMP 302 24 37 13 1.99 1.08
107 132 25 1.82 1.39
No.2W MMP 303A 24 44 20 1.67 1.10
No.2W MMP 304A 11 21 10 1.64 1.14
53 77 24 1.55 0.94
No.2W MMP 305 27 39 12 1.86 1.28
73 103 30 1.54 0.95
No.2W MMP 306 98 125 27 1.72 1.13
No.2W MMP 307 39 59 20 1.62 1.02
No.2W MMP 308 66 94 28 1.77 1.12
No.2W MMP 309 96 124 28 1.87 1.10
No.2W MMP 310 32 44 12 0.97 1.12
115 132 17 1.21 1.30
No.2W MMP 311 62 79 17 1.73 0.89
82 96 14 1.69 1.20
No.2W MMP 312 89 114 25 1.57 1.11
No.2W MMP 315 17 27 10 1.74 1.48
30 56 26 1.59 1.15
No.2W MMP 316 85 105 20 1.66 1.09
No.2W MMP 319 1 14 13 1.59 1.20
No.2W MMP 323 8 42 34 1.41 0.81
No.2W MMP 331 10 23 13 1.30 0.78
52 64 12 1.39 0.75
FORWARD WORK
Drill results are currently being compiled and validated for inclusion in a comprehensive
database from which a geological model of the Mt Marion deposits will be constructed in
preparation for resource estimation by April 2010.

Further drilling in a Phase 2 programme
(45 holes) is currently in progress on the No.5 Deposit, from which it is anticipated that
additional resources will be outlined.

Drill testing will also be carried out on two additional
pegmatite prospect: No.1W and an un‐named pegmatite.
The Joint Venturers expect to mobilise a processing plant and related equipment with a
production rate of 17,000 tonnes per month of +6.5% Li2O concentrate in 2010 subject to a
decision to mine and obtaining all necessary approvals.
C J Reed
MANAGING DIRECTOR
Competent Persons Statement
Geological aspects of this report that relate to Exploration Results have been compiled by Dr Bryan Smith (MAIG),
a consultant to Reed Resources Ltd.

Dr Smith has sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which is being reported on to qualify as a Competent
Person as defined in the Code for Reporting of Mineral Resources and Ore Reserves.

Dr Smith consents to the
inclusion in the report of the matters in the form and context in which it appears.
Although Reed remains optimistic about the potential of the Mount Marion project, any reference to the terms
"ore" and "high‐grade" in this report is conceptual in nature.

Use of the term "grade(s)" is not intended to
represent the grade of a resource.
About Reed Resources
Reed Resources Ltd is a diversified mining and exploration Company based in Western
Australia.

It has modest gold production and is expanding and diversifying its production
base.

Reed Resources has five main projects (all in Western Australia) including;
• Mount Marion - High‐grade Lithium project located about 40km south of Kalgoorlie in
JV with Mineral Resources Ltd.
• Comet Vale - High‐grade underground gold mine in JV with Kingsrose Mining Limited
(resuming 100% equity on 1 June 2010).
• Barrambie - Definitive Feasibility Study completed on a Ferrovanadium operation to
produce 6300t of vanadium per annum.

Currently in approvals process.
• Mount Finnerty - Iron ore JV with Cliffs Natural Resources & Nickel Farm‐out Western
Areas NL.

A Nickel Farm‐in with Barranco Resources NL
• Bell Rock Range - Nickel‐Copper‐PGM JV with Anglo American Exploration.
Website: www.reedresources.com
Figure 3 Cross section (A‐A" in Figure 1) in the central part of the No.2W deposit
(interpretation by Bryan Smith Geosciences).
Appendix A
Summary of all intercepts of mineralisation for all assays with greater than 0.4 % Li2O,
continuous throughout each intercept.
DEPOSIT HOLE_NO
Local
Northing
Local
Easting FROM TO Interval Li2O Fe2O3
m m m % %
No.1 MMP 119 5381 2620 13 17 4 1.30 1.24
No.1 MMP 121 5352 2619 7 13 6 1.31 1.34
No.1 MMP 122 5356 2588 17 24 7 1.46 0.85
No.1 MMP 123 5324 2656 0 4 4 1.27 1.69
No.1 MMP 124 5323 2589 9 22 13 1.60 1.40
No.1 MMP 125A 5324 2527 11 13 2 1.47 0.93
No.1 26 30 4 1.80 1.13
No.1 MMP 126 5291 2650 0 2 2 1.39 0.96
No.1 MMP 127 5287 2620 0 9 9 2.00 0.99
No.1 MMP 128 5291 2530 5 10 5 1.09 2.08
No.1 MMP 128A 5292 2530 6 10 4 1.22 1.17
No.1 MMP 129 5257 2650 0 4 4 1.40 1.17
No.1 MMP 130 5256 2530 4 9 5 1.22 1.29
No.1 MMP 131 5258 2500 14 25 11 1.29 0.95
No.1 MMP 132 5229 2560 6 26 20 1.55 1.03
No.1 MMP 133 5229 2531 18 34 16 1.38 1.09
No.1 MMP 134 5234 2500 18 37 19 1.53 0.99
No.1 MMP 135 5198 2589 0 20 20 1.62 0.81
No.1 MMP 136 5197 2529 15 32 17 1.39 0.88
No.1 MMP 137 5196 2502 18 38 20 1.28 0.92
No.1 MMP 138 5171 2620 9 13 4 1.40 1.09
No.1 MMP 139 5170 2589 0 19 19 1.23 1.25
No.1 MMP 140 5170 2529 11 31 20 1.44 1.98
No.1 34 37 3 0.93 4.31
No.1 MMP 141 5169 2500 18 40 22 1.78 1.31
No.1 MMP 144 5135 2530 6 28 22 1.68 0.89
No.1 MMP 145 5136 2502 17 40 23 1.50 1.31
No.1 MMP 146 5106 2589 0 10 10 1.00 0.97
No.1 MMP 147 5104 2560 0 14 14 1.71 0.99
No.1 MMP 148 5105 2530 4 25 21 1.71 1.15
No.1 MMP 149 5104 2499 38 51 13 1.66 1.12
No.1 MMP 150 5073 2590 1 7 6 0.93 0.92
No.1 MMP 151 5076 2560 0 16 16 1.73 1.39
No.1 MMP 152 5073 2500 38 49 11 1.37 1.02
No.1 MMP 154 5045 2560 0 15 15 1.45 1.63
No.1 MMP 155 5045 2530 15 30 15 1.34 1.20
No.1 MMP 158 5015 2560 0 14 14 1.33 1.03
No.1 MMP 159 5016 2530 20 30 10 1.41 1.34
No.1 MMP 161 4955 2590 14 20 6 1.07 1.33
DEPOSIT HOLE_NO
Local
Northing
Local
Easting FROM TO Interval Li2O Fe2O3
m m m % %
No.1 MMP 167 4894 2530 8 13 5 1.44 1.67
No.1 MMP 168 5045 2502 35 41 6 1.76 1.63
No.1 43 46 3 0.69 0.79
No.1 MMP 169 5170 2466 47 61 14 1.46 1.59
No.1 MMP 170 5196 2471 19 22 3 1.30 2.88
No.1 30 52 22 1.50 1.15
No.1 MMP 171 5237 2471 22 43 21 1.80 1.27
No.1 MMP 178 4955 2500 28 31 3 1.48 5.28
No.1 48 61 13 1.63 0.95
No.1 63 65 2 0.99 0.66
No.1 MMP 179 5015 2500 32 39 7 1.43 1.32
No.1 56 58 2 0.88 0.82
No.1 62 63 1 0.55 0.66
No.1 MMP 180 5045 2470 43 48 5 1.53 2.23
No.1 58 61 3 1.29 2.11
No.1 63 70 7 1.01 0.75
No.1 MMP 181 5075 2470 51 65 14 1.63 1.19
No.1 MMP 182 5136 2470 55 69 14 1.68 1.57
No.1 MMP 183 5136 2440 63 78 15 0.98 1.06
No.1 MMP 184 5167 2440 68 83 15 1.55 1.07
No.1 MMP 185 5198 2440 58 65 7 1.77 1.10
No.1 67 68 1 0.51 0.65
No.1 MMP 186 5229 2410 64 77 13 1.45 1.38
No.1 MMP 187 5258 2380 51 60 9 1.54 1.49
No.1 MMP 188 5289 2470 15 30 15 1.49 1.17
No.1 40 45 5 1.15 2.27
No.1 MMP 189 5289 2440 33 43 10 1.55 1.52
No.1 MMP 190 5320 2470 3 17 14 1.38 0.93
No.1 35 38 3 1.74 1.66
No.1 MMP 191 5350 2530 17 22 5 1.57 1.84
No.1 MMP 192 5350 2500 28 31 3 1.28 2.85
No.2 MMP 201 6000 2240 42 50 8 1.47 1.55
No.2 MMP 202 6000 2200 55 65 10 1.72 1.22
No.2 MMP 203 5960 2320 0 10 10 1.45 1.26
No.2 MMP 204 5960 2280 17 26 9 1.37 1.81
No.2 MMP 205 5960 2240 35 45 10 1.58 1.88
No.2 MMP 206 5920 2320 0 8 8 1.40 1.27
No.2 MMP 207 5920 2280 15 25 10 1.63 1.78
No.2 MMP 208 5920 2240 33 38 5 1.61 1.14
No.2 42 46 4 1.60 0.90
No.2 MMP 209 5880 2280 22 32 10 1.40 1.90
No.2 MMP 210 5880 2240 32 36 4 1.48 2.11
No.2 39 46 7 1.45 1.58
DEPOSIT HOLE_NO
Local
Northing
Local
Easting FROM TO Interval Li2O Fe2O3
m m m % %
No.2 MMP 211 5840 2280 21 30 9 1.75 0.93
No.2 MMP 212 5840 2240 30 34 4 1.60 1.40
No.2 38 44 6 1.17 3.52
No.2 MMP 215 5800 2200 17 18 1 0.47 4.64
No.2 42 53 11 1.62 1.25
No.2 MMP 217 5760 2200 29 41 12 1.46 1.54
No.2W MMP 101A 5960 1920 9 18 9 1.48 1.24
No.2W 67 93 26 1.60 1.38
No.2W MMP 102A 5960 1960 0 6 6 1.65 0.94
No.2W 38 40 2 1.35 1.06
No.2W 46 62 16 1.61 1.53
No.2W MMP 301 5960 1880 9 20 11 1.42 1.71
No.2W 85 113 28 1.61 1.14
No.2W MMP 302 5960 1840 24 38 14 1.88 1.53
No.2W 107 132 25 1.82 1.39
No.2W MMP 303A 5920 1960 24 45 21 1.61 1.22
No.2W 47 48 1 0.85 3.60
No.2W MMP 304 5920 1920 12 21 9 1.77 0.84
No.2W MMP 304A 5920 1920 11 21 10 1.64 1.14
No.2W 53 77 24 1.55 0.94
No.2W MMP 305 5920 1880 18 20 2 2.04 1.52
No.2W 27 39 12 1.86 1.28
No.2W 73 103 30 1.54 0.95
No.2W MMP 306 5920 1840 25 30 5 1.62 0.83
No.2W 39 45 6 1.55 0.97
No.2W 98 125 27 1.72 1.13
No.2W 128 132 4 1.33 1.10
No.2W MMP 307 5880 1920 18 27 9 1.74 0.97
No.2W 39 59 20 1.62 1.02
No.2W 62 66 4 1.39 2.07
No.2W 77 82 5 1.17 1.33
No.2W MMP 308 5880 1880 15 17 2 1.27 5.29
No.2W 33 44 11 1.36 1.30
No.2W 66 94 28 1.77 1.12
No.2W 129 132 3 1.62 1.71
No.2W MMP 309 5880 1840 19 25 6 1.83 1.36
No.2W 41 46 5 1.79 0.94
No.2W 75 77 2 1.48 3.94
No.2W 96 124 28 1.87 1.10
No.2W MMP 310 5880 1800 32 45 13 0.93 1.42
No.2W 115 132 17 1.21 1.30
DEPOSIT HOLE_NO
Local
Northing
Local
Easting FROM TO Interval Li2O Fe2O3
m m m % %
No.2W MMP 311 5840 1880 23 32 9 1.49 1.38
No.2W 61 79 18 1.65 1.24
No.2W 82 96 14 1.69 1.20
No.2W MMP 312 5840 1840 30 38 8 1.78 1.04
No.2W 73 74 1 1.44 3.68
No.2W 88 114 26 1.53 1.14
No.2W MMP 313 5840 1800 42 47 5 1.13 1.13
No.2W 61 64 3 1.79 1.71
No.2W 104 116 12 1.26 1.29
No.2W MMP 314 5800 1920 13 14 1 0.78 1.07
No.2W 17 25 8 1.38 1.26
No.2W 33 37 4 1.33 1.99
No.2W MMP 315 5800 1880 11 12 1 1.67 3.02
No.2W 17 56 39 1.53 1.58
No.2W 97 99 2 1.39 3.58
No.2W MMP 316 5800 1840 18 26 8 1.55 1.02
No.2W 85 105 20 1.66 1.09
No.2W MMP 319 5920 2000 1 14 13 1.59 1.20
No.2W MMP 320 5880 2000 2 3 1 0.41 0.68
No.2W MMP 321 5880 1960 3 11 8 1.06 0.73
No.2W 15 20 5 1.12 2.58
No.2W 67 71 4 1.36 2.03
No.2W MMP 322 5840 1960 12 18 6 1.36 1.55
No.2W MMP 323 5842 1920 8 43 35 1.38 0.83
No.2W MMP 324 5800 1960 6 13 7 1.66 1.48
No.2W 30 31 1 0.51 5.86
No.2W MMP 325 5760 1920 27 29 2 2.58 1.52
No.2W 33 39 6 1.50 1.84
No.2W 46 48 2 0.78 4.16
No.2W MMP 329 5720 1920 34 43 9 1.61 1.29
No.2W MMP 331 5720 1840 10 25 15 1.19 0.76
No.2W 52 64 12 1.39 0.75
NOTES:
1.

Collar coordinates are for a local grid as illustrated in Figures 2 and 3
2.

All holes were drilled vertically and drilled to depths of between 6 and 152 metres.
3.

All depths and intercept lengths are down-hole distances and not intended to represent the true
width of high-grade bands.
4.

All samples analysed by Genalysis Laboratories , Maddington, WA.

Samples were sorted,
dried, split and pulverised then prepared as fused discs for analysis by X-Ray fluorescence
spectrometry (method XRF01) for Fe, Si, Al, Mg, Ca, Mn, P, K, Na,Ta and NB.

Li was assayed
by Atomic Absorption Spectrometry (AAS) following multi acid digest and LOI by gravimetric
method.

QA/QC was monitored using duplicate samples and a sample of Certified Reference
Material (CRM) included at random among batches of samples and submitted blind to the
laboratory; and analysis of pulverised CRMs and Reed standards have also been included
sample batches.
5.

Grades are reported as Li2O and Fe2O3, in accordance with convention for reporting this style
of mineralisation.
6.

Holes that that did not intersect significant mineralisation (i.e., intercepts >0.4 % Li2O) are not
listed.
ENDS




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