VECTOR RESOURCES LIMITED - ASX: VEC

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Description

Vector Resources Ltd to acquire high grade gold assets with near-term production potential.

On 5 November 2010, Vector Resource Ltd (“Vector” or the “Company”) lodged a Bidder’s Statement with ASIC seeking to acquire 100% of the share capital of Golden Iron Resources (“Golden Iron”). The bid is a script offer with Golden Iron shareholders receiving 1 Vector share for 2 Golden Iron shares. The offer has unanimous support with Golden Iron’s board and in the absence of a superior offer it is recommended by the Golden Iron board.

Acquisition highlights:

* Highly prospective portfolio of gold assets in endowed gold province of Southern Cross, Western Australia, hosting a high-grade JORC Compliant Resource of 798,900t @ 4.7 g/t for 118,800 oz Au
* Potential for early production and cashflow from lead Mt Dimer Project
* Potential for DSO iron ore (direct shipping ore) operation at Gwendolyn Project with surface samples returning values of up to 66.5% Fe
* Highly credentialed management team of resource professionals with track-record of resource development and production

Earaheedy JV Project:

In February 2010, the Company entered into a 50/50 joint venture with Cazaly Resources Limited (“Cazaly”) (the “Earaheedy JV”). The Earaheedy JV project area is located in central Western Australia (approximately 750kms north east of Perth) covering an area in excess of 2,700 km2 including a substantial strike extent of the iron ore prospective Frere Formation located in the Earaheedy Basin located 150kms north of Wiluna in Central Western Australia.

The Earaheedy JV includes 8 exploration licences, 1 prospecting licence and 17 licence applications. Cazaly is the manager of the JV.

Initial field reconnaissance work within the JV project area has defined several particular target areas (detailed below) based upon coincident stratigraphy, gravity and magnetic anomalism and surface sampling. Numerous significant results from surface sampling have been received from these areas typically with results in excess of 60% Fe.

The Frere Formation will be the primary focus for iron ore exploration within the Earaheedy Basin. The formation comprises several units of granular and supergene-enriched iron formations separated by shale, siltstone, chert and jasper beds. The iron formations generally increase in thickness and abundance in a north-westerly direction within the Earaheedy Basin and exhibit similarities to iron formations of the Lake Superior region of North America.

Whilst the project is in the early stage of development, the extent of known iron formations within the Frere Formation, the results from regional surface sampling, gravity and reconnaissance RC drilling, and the results from other work in the region highlights the great potential of the project to host several large scale deposits of haematite, haematite-geothite and magnetite.

Mine For

gold, iron ore

Location of operation(s)

Western Australia

Address

16 Southport St
LEEDERVILLE, WA, AUSTRALIA

Phone

(61 8) 6389 5700

Email

Website

http://www.vectorresources.com.au

Last Updated

19/01/2011