Development

The Company has appointed leading engineering consultants Engenium Pty Ltd to undertake a detailed scoping and prefeasability study to determine the optimum development options for the Wiluna West Project. The results of this study are expected in December 2008. It is anticipated that the Company will proceed immediately to a definitive feasibility study on receipt of these results.

Overview

Iron ore resources

The Wiluna West Project hosts some 126 million tonnes of Inferred Direct Shipping Ore (DSO) hematite ore at 59% Fe contained within two iron ore ridges, Unit B and Unit C and collectively within nine ore bodies.

Current activities

  • A proposal for mining of a bulk sample in 2009 has been submitted for approval.
  • The company expects to complete a definitive feasibility study and submit a mining proposal during 2009.
  • The focus of drilling and other studies in 2009 will be predominantly to convert Inferred Resources to Indicated Resources (>100Mt).
  • A program of metallurgical diamond drill testing of the deposits commenced in 2007 to provide ore characterisation in advance of feasibility testing.

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Steel market

The Company has completed share placements to Hunan Valin Steel Co Limited (the sixth largest steel company in China) and Yijian Investment Co of Hong Kong.

The Company also entered into long term off take agreements with Hunan Valin and Yijian.

Investments to supply up to 5 million tonnes of direct shipping ore annually for a period of 15 years.

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