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22, 2007 01:00pm
FLINDERS Diamonds shares more than quadrupled today after it said it had identified an iron ore target next to Fortescue's billion-tonne Pilbara resource.

Flinders shares were trading at just 1c when they were placed in a trading halt on Wednesday.

Soon after the company announced it was targeting 325-390 million tonnes of ore on its Hamersley tenement E47/882, the shares had jumped to more than 4c, with more than 400 million shares being traded within an hour of the announcement.

The tenement in question is adjacent to Fortescue's Solomon deposit, which that company announced contained more than one billion tonnes of roe earlier this month.

Flinders managing director Kevin Wills said the Adelaide-based company had commissioned an independent study of its tenement over the past five months.

"The upshot of that independent review of our own Pilbara ground has outlined the large 325-390 million tonnes target which, if confirmed by drilling, would provide a company-making project for Flinders Diamonds,'' Dr Wills said.

``Flinders is currently undertaking a review of the options available to it with respect to future exploration and corporate activities at the Hamersley Licence E47/882.

``The company believes this tenement will have the potential to offer significant value to its shareholders and will update the market on any material developments regarding its iron ore assets.''

Dr Wills said the new exploration target of 325-390 million tonnes of iron ore was conceptual in nature and there had been insufficient exploration carried out to estimate a mineral resource.

``It is also therefore uncertain whether further exploration will result in a larger, smaller or any mineral resource,'' he said.

The emergence of the iron ore target is a totally new play for FLinders which has in recent years floated off its gold and base metals interests into a separate company.