ferrets stock to watch: yilgarn mining ltd

Ferrets Stock to Watch: YILGARN MINING LTD
08:28, Monday, July 09, 2007

ANOTHER WA EXPLORER FOCUSING ON ITS IRON ORE PROSPECTS

Sydney - Monday - July 9: (RWE Aust Business News)
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OVERVIEW
********

Management experience plays an important part in the future of
an explorer/producer and especially so in specialised sectors of the
industry.

One company that recent came to Ferret's notice was Yilgarn
Mining Ltd (ASX:YML) after Wayne Richards was appointed as managing
director.

He is a highly experienced and accomplished Australian iron ore
executive, formerly a senior executive with BHP Billiton's iron ore
division.

Mr Richards has an extensive nickel experience.

With the company's statement to the ASX on July 2, Yilgarn
Mining announced it plans to expand its exploration and development
focus in iron ore, beginning with the 100 per cent-owned Marillana
project in the Pilbara region of Western Australia.

Drilling is underway at Marillana with a 40-hole RC (Reverse
Circulation) drilling program to in-fill the northwest sector and
underpin a JORC-compliant resource estimate.

Since 2004, Mr Richards - who held the key position of Project
Integration & Commissioning Leader for BHP Billiton iron ore division,
with responsibility for integrating projects across BHP Billiton's
three iron ore business sectors (mine, port and rail) - will now
spearhead Yilgarn's plans to advance its Marillana iron ore project.

Yilgarn has previously reported a 'mineralization estimate for
the northwest sector of 30 million tonnes grading 58.4pc Fe (64pc Fe on
a calcined basis).

Yilgarn's founding managing director, David Burt, stepped down
from the position on July 2 after five years at the company's helm.

Chairman Ross Norgard said the appointment of Mr Richards
represented a significant vote of confidence in the quality and growth
potential of the company's strategically located iron ore assets in the
Pilbara region by one of Australia's most experienced and accomplished
iron ore executives.

"We are delighted to announce that Wayne has agreed to join us
as managing director to advance the development of our assets to the
next level," Mr Norgard commented.

He added it was the culmination of a planned management handover
after Mr Burt indicated his wish to step back from front-line executive
duties.

"David has played a key role in the establishment, listing and
subsequent development of Yilgarn to the point where we now have two
excellent assets in Marillana and the Carr Boyd nickel project with the
potential to underpin a significant increase in value for our
shareholders," Mr Norgard added.

Mr Richards said he was attracted to Yilgarn by the excellent
potential of its iron ore assets and their strong growth potential
relative to other junior iron ore companies in Australia.

"I look forward to working with the Yilgarn team to advancing
their projects to the next level, with the Marillana project
representing the core of a potentially exciting iron ore portfolio in
the Pilbara region," he said.

"The delineation of a JORC-compliant resource estimate for the
Marillana mineralization will represent the first key step in
establishing a strong growth platform for the company and achieving a
significant value-uplift.

"The next important steps will be ongoing exploration to extend
the mineralization and securing an off-take agreement to enable us to
commercialise the project," he suggested.

SHARE PRICE MOVEMENTS
*********************

Shares of Yilgarn fell 5.5c to 54.5c on Friday. Rolling high for
the year is 62c and low 12c. The company has 64.5 million shares on
issue with a market cap of $35.1 million.

The Marillana detrital iron ore prospect is located between the
Hamersley Ranges and Fortescue River Valley in the world-class Pilbara
iron ore region.

The current focus of exploration is the northwest sector, where
drilling last year confirmed continuous, high-grade mineralization which
is expected to underpin an initial JORC-compliant resource.

A gravity survey conducted during the December quarter
identified a number of anomalies similar in magnitude to the
mineralisation at the northwest sector, highlighting potential further
significant accumulations of detrital iron ore mineralisation.

The tenements surrounding the Marillana licence area, E47/1408,
are held by high-profile iron ore producers and developers Rio Tinto,
BHP Billiton, Hanc*ck Mining and Fortescue Metals Group.

Yilgarn anticipates broadening its iron ore exploration activity
within the east and west Pilbara region within the company's tenement
portfolio which comprises four recently granted exploration licences and
four priority exploration licence applications in addition to the
Marillana licence.

The company is also advancing its key nickel asset, the Carr
Boyd nickel-copper sulphide project, where it is earning a 51 per cent
interest from Australian Nickel Mines, a subsidiary of Consolidated
Minerals Ltd.

The proposed recommencement of mining at Carr Boyd is currently
being evaluated in two stages, an initial open pit expansion and a
subsequent decline development to access deeper resources

The underground scoping study identified a potential diluted
mineable resource of 533,705 tonnes grading 1.17pc Ni; 0.43pc Cu, (for
6,244 tonnes contained Ni and 2,295 tonnes of contained Cu).

It should be noted that whereas the open pit study is totally
based upon an Indicated Mineral Resource, the underground study is based
upon combined Indicated and Inferred Resources below the base of the
proposed pit.

BACKGROUND
**********

Yilgarn Mining (formerly Agro Holdings Ltd) was listed on May
21, 1999.

The company was re-listed in August 2004.

Yilgarn Mining's objectives are focused on exploration
development of a number of minerals including (copper cobalt) and gold
projects within Australia but with additional exploration interests
including iron ore and mineral sands projects.

Some of these projects are located within the Yilgarn Craton of
Western Australia.

The company's Marillana iron ore project is located in the
northwest sector and comprises an estimated 30 million tonnes grading
58.7pc Fe.

In nickel the INi-Cu prospect (earning 51pc), is based on
indicated and inferred primary resources of 597,000 tonnes grading
1.38pc Ni and 0.48pc Cu.

The Irwin-Coglia Ni-Co Laterite & Ni-Cu sulphide prospect
(earning 40pc) is a joint venture with Murrin Murrin Holdings Pty Ltd
and Glenmurrin Pty Ltd.

The test work is based upon samples from Cogila South which
has a resource of 2.3 million tonnes grading 1.27pc Ni and 0.22pc Co.

The BYRO Ni-Cu prospect (100pc), is an exploration project
managed by Mithril Resources under a farm-in joint venture by which
Mithril can earn an initial 51pc interest by expenditure of $2 million.

ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved.