Cape Lambert Iron Ore Limited (CLIO)

Cape Lambert Iron Ore Limited (CLIO) – Final Drill Results Received at Cape Lambert

Hightlights
• Positive Davis Tube Recovery results received from the last holes of the infill phase of the drill program;
• The DTR results continue to show that magnetite mineralisation at Cape Lambert is capable of being concentrated to a product suitable for the manufacture of blast furnace feed pellets (+65% Fe and ≤ 5% SiO2 + Al2O3);
• Significant intercepts include 104m (from 92m) at an average DTR recovery of 24.4% mass to concentrate with a concentrate grade of 68.3% Fe and 4.7% silica from reverse circulation drill hole MA 438.

Background
Cape Lambert Iron Ore Limited is an Australian iron ore and exploration development company, which owns 100% of the Cape Lambert Iron Ore project, located in the Pilbara region of Western Australia. The Project currently has a 1.56 billion tonne JORC compliant magnetite iron ore resource, is at feasibility stage and is subject to an offer for purchase by China Metallurgical Group Corporation.
The objective of the drilling program (which commenced in the June 2007 quarter and was completed in the March 2008 quarter) was to further increase the size and confidence level of the resource to underpin the development of a standalone, open pit mining operation capable of producing 15Mtpa of magnetite concentrate.

For more information go to www.capelam.com