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EASTERN IRON LIMITED

ASX: EFE

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Eastern Iron's strategy aims to create shareholder value and reduce exploration risk by acquiring interests in projects located close to infrastructure with a good discovery potential or a known resource with growth potential.

Eastern Iron Limited was originally formed to investigate the potential for iron ore on the infrastructure rich, eastern seaboard, which is home to the bulk of Australia’s industrial capacity, population, workforce and markets.

Eastern Iron is currently exploring the Hawkwood Magnetite-Vanadium Project in southern Queensland and the bulk tonnage iron pisolite, Cobar/Main Line Projects in NSW. Additionally, recent Board appointments have further strengthened our project generation/evaluation team in our search for quality iron, copper, copper-gold and precious metal assets that have the potential to generate cash flow.

Cobar/Main Line Projects

Eastern Iron's initial projects are based on the existence of very large quantities of shallow, low grade, yet easily extractable iron in central western NSW, adjacent to existing, port linked, public access rail infrastructure. Innovative thinking and prompt action by Eastern Iron has enabled it to secure one of the largest tenement positions in this region of Australia, covering a large part of central western NSW.

These deposits are Channel Iron Deposits (CID) formed by the weathering and alluvial concentration of lateritic (iron-rich) soil material in old river beds (palaeochannels). It is the process of mechanical concentration and chemical upgrading of the lateritic material that provides this type of deposit with the economic potential that may be suitable for blend feed or further beneficiation.

The exploration targets are large tonnage, easily extractable maghemite deposits in shallow palaeochannels close to public-access rail and road. Eastern Iron's project areas have the potential to meet these criteria and the Company is continuously assessing new areas and opportunities.

In September 2009, Eastern Iron announced initial resource estimates for the Company's Cobar and Main Line Projects located in central NSW, Australia. These estimates are reported in accordance with the 2004 JORC Code. The current resource estimates of 627Mt above the 5% Fe cut-off for the 13 prospect areas are detailed in the announcement dated 8 October 2009.

Eastern Iron is negotiating with potential joint venture parties to investigate downstream processing and marketing options for the large tonnage Cobar Iron Project. Additional resource calculation work for drying magnetically recoverable product from the Cobar and Main Line Projects will be announced shortly and further work programs are being considered with joint funding of these activities being pursued through joint venture discussions with interested groups.

Hawkwood

The Hawkwood Project in southern Queensland is located 160km from the coast and 250km by rail from the coal export port of Gladstone, an area well serviced with existing infrastructure which includes deepwater ports and a proposed steel mill.

The Hawkwood Project includes some 100% Eastern Iron tenure and a JV between Eastern Iron, Rugby Mining Pty Ltd (Rugby) and Rugby Mining Limited (TSX Code: RUG). Part of the JV area is subject to a 2% Net Smelter Royalty held by Newcrest Operations Limited (ASX Code: NCM). Eastern Iron can earn a 50% interest in the exploration area by spending $700,000 within three years and can earn up to an 80% interest by spending in staged increments to a Bankable Feasibility Study. The joint venture transaction has been accepted by the TSX Venture Exchange.

The Hawkwood Project area contains layered intrusive complexes of the Bushveld Type, South Africa. These intrusions often form large, sill-like bodies of differentiated igneous rock which exhibit extensive layering (distinct differences in mineral compositions and textures) extending laterally over many square kilometres. They are important hosts for titanium- and vanadium-bearing magnetite iron deposits such as at Savage River, Tasmania and Balla Balla, Western Australia as well as some of the world's largest platinum-palladium group element (PGE) deposits such as the Merensky Reef, South Africa.

On 18 February 2010, Eastern Iron announced very encouraging new magnetite concentrate assay results with all samples returning approximately 60% Fe and 1% V2O5 after recovery, following a relatively coarse (75 micron) grind. Contaminant levels, including phosphorous sulphur and halides are low, clearly highlighting the potential high quality of concentrate that could be produced from the Hawkwood intrusion.

Mine For

iron ore, vanadium, magnesium

Location of operation(s)

New South Wales, Queensland

Address

Suite 3, Level 1 , 80 Chandos Street
ST LEONARDS, NSW, AUSTRALIA

Phone

02 9906 7551

Email

Website


Last Updated

11/04/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.