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Centrex Metals Chairman Increases Holding Through On-Market Purchases

Centrex Metals' (ASX: CXM) chairman David Klingberg has increased his interest in the company after an on-market trade as it progresses towards a Definitive Feasibility Study for its Fusion magnetite iron project in South Australia.

Klingberg has taken up a further 100,000 shares in Centrex through his super fund, increasing his indirect holdings to 1.247 million shares. Total consideration of A$21,000 was paid for an average entry price of $0.21.

Centrex had last week announced a maiden Indicated Resource for Fusion, which includes 54.5 million tonnes for the Koppio deposit which hosts an overall inventory of 176.3 million tonnes.

This will form part of the current and well advanced A$45 million Definitive Feasibility Study - due for completion early 2013.

In total Fusion has a mineral resource of 499 million tonnes, and highlighting the likelihood of upgrades in the near term - the joint venture currently has an ongoing 108,000 metre diamond core drilling campaign - targeting Ore Reserves for the life of mine, while also looking define further resource potential.

Centrex's partner, Wuhan Iron & Steel Co. (WISCO), one of China's top five steelmakers, paid $A78 million directly to the company for 60% of the iron ore rights to five Exploration Licences on the Southern Eyre Peninsula. Centrex retains a 40% interest in the joint venture.

Both the DFS and the Scoping Study assumed production of between 5 million tonnes and 10 million tonnes per annum. Based on these figures, the Scoping Study indicates that Fusion could have free on board operating costs including royalties and the port of between A$65 and A$71 per tonne, and require capital investment including port facilities of between A$1.7 billion and A$2.6 billion.

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