Exploration Licence 47/1493 Now Granted and Drilling to Commence in October
- Drilling scheduled to commence at Cape Lambert South in October 2008 following the grant of Exploration Licence 47/1493;
- Second cash payment of AUD$80 million now due to be received on 22 September 2008; and
- Announcement in regard to the timetable applicable to the reduction of capital and unfranked dividend to be made on or around 30 September 2008.
The Cape Lambert South Project ("Project") is located in the Pilbara region of Western Australia, approximately 20km eastsoutheast of Karratha and 10km west of Roebourne. The Project is immediately south of, and is the extension to, MCC Mining (Western Australia) Pty Ltd's ("MCC Mining") 1.6 billion tonne magnetite project.
The initial reverse circulation drilling program, which is expected to be completed inside 3 months, comprises approximately 5,000m and has been developed to confirm the presence of magnetite iron mineralisation and to define the extent of the iron mineralisation. A second, infill program is planned to commence in March/April 2009 with the objective of providing sufficient geological information and confidence, which subject to exploration success, would enable a mineral resource estimate to be determined.