quarterly

AQA Quarterly Report ? December 2010 1
Quarterly Report
December 2010
Aquila
Aquila Resources Limited Telephone: +61 8 9423 0111
Facsimile: +61 8 9423 0133
Level 2, Aquila Centre
1 Preston Street, Email: [email protected]
Como WA 6152 Website: www.aquilaresources.com.au
Anketell Point with Dixon Island in the foreground
HIGHLIGHTS
AQA Quarterly Report ? December 2010 2
COAL
Isaac Plains Coal Mine
 There were no Lost Time Injuries (LTIs) during
the Quarter with the 12 month rolling average
LTI Frequency Rate for the Isaac Plains Coal
Mine being maintained at zero LTIs per million
man hours worked.
 The mining operation at Isaac Plains was
severely affected by weather in December which
resulted in below budget overburden movement
and coal production.
 A total of 390Kt of saleable coal was produced
during the Quarter.
 Coal sales for the Quarter were 625Kt.
 Dragline erection continues on schedule and is
expected to be completed and operational
during the June Quarter 2011.
Eagle Downs Hard Coking Coal Project
 The Definitive Feasibility Study work programme
advanced during the Quarter.
 Evaluation is underway on the tenders for
surface, CHPP and underground work
packages.
Washpool Hard Coking Coal Project
 Work continued on the Definitive Feasibility
Study process which is expected to be
completed by September Quarter 2011.
 The draft EIS has been submitted to DERM for
review.
Talwood Coking Coal Project
 The exploration programme was completed
during the Quarter.
 An updated Resource Statement was released
during the Quarter increasing the total Resource
to 246Mt of Indicated and Inferred Resource.
IRON ORE
West Pilbara Iron Ore Project
 An updated JORC Resource for the West
Pilbara Iron Ore Project was reported and now
totals 927Mt at 57.5% Fe, which is an increase
of 37% over the previous Resource Statement.
Approximately 87% of the Stage 1 development
Resource (687Mt) is now in the Measured and
Indicated categories.
 Following the completion of mining studies, a
maiden JORC Ore Reserve of 445Mt at 57.1%
Fe was reported for the Stage 1 development
area. The overburden to ore ratio reduced to
1.13 from 1.85 previously.
 The Anketell Point Port Public Environmental
Review (PER) was released for public comment
on 20 December 2010.
 The Office of the Environmental Protection
Authority (OEPA) commenced assessment of
the Mine and Rail PER following the public
review process.
 An additional four Memoranda of Understanding
were executed, taking the total to 38 MoU with
steel mills in China, Japan, Korea and Taiwan.
 Conditional approval was granted by the API
Joint Venture Participants to undertake mine
development for Stage 1 of the West Pilbara
Iron Ore Project.
 The RC drilling programme continued at the
Weckl prospect. Drilling highlights include
(Detrital intercepts >20m):
 24m @ 57.65% Fe from 16m in WKRC092;
 20m @ 56.21% Fe from 16m in WKRC140;
 20m @ 55.83% Fe from 18m in WKRC141;
 24m @ 57.13% Fe from 6m in WKRC206;
 22m @ 58.18% Fe from 6m in WKRC214;
 30m @ 56.71% Fe from 16m in WKRC218;
 22m @ 56.81% Fe from 8m in WKRC270.
All intercepts were calculated for greater than 52% Fe cut.
 An RC drilling programme was completed at the
Downey prospect. Drilling highlights include
(Detrital and channel iron intercepts >15m):
 18m @ 54.88% Fe from 10m in DORC016;
 18m @ 56.40% Fe from 18m in DORC031;
 30m @ 54.29% Fe from 4m in DORC053.
All intercepts were calculated for greater than 52% Fe cut.
 An initial round of RC drilling was completed at
the Buckland Hills prospect resulting in
extensive channel iron mineralisation being
identified. Assay results are pending.
 An infill RC drilling programme has continued at
the Hardey deposit with highlights including
(Bedded iron intercepts >80m):
 90 m @ 59.58% Fe from 0m in HARC287;
 138m @ 63.12% Fe from 0m in HARC329;
 128m @ 60.89% Fe from 0m in HARC351;
 84m @ 62.54% Fe from 64m in HARC356;
 106m @ 62.58% Fe from 10m in HARC361;
 108m @ 62.31% Fe from 26m in HARC366.
All intercepts were calculated for greater than 58% Fe cut.
HIGHLIGHTS
AQA Quarterly Report ? December 2010 3
Thabazimbi Iron Ore Project
 An updated JORC Resource at Meletse Iron Ore
Deposit was reported and now totals 47.6Mt at
62.9% Fe, which is an increase of 117% over
the previous Resource Statement.
Approximately 33% of the Resource is now in
the Indicated category.
 Drilling continued at the Meletse Iron Ore
Deposit where the Deposit remains open along
strike and at depth. Significant high-grade Fe
intercepts received during the Quarter include:
 4m at 61.56% Fe from 254m and
3m at 62.06% Fe from 288m in DT38;
 14m at 64.55% Fe from 200m in DT40;
 3m at 60.22% Fe from 306m in DT55;
 4m at 60.45% Fe from 148m and
8m at 60.02% Fe from 159m and
23m at 66.14% Fe from 182m and
11m at 61.22% Fe from 246m in DT50;
 27m at 62.83% Fe from 248m in DT53;
 33m at 65.75% Fe from 210m in DT60;
 6m at 62.36% Fe from 182m and
7m at 62.31% Fe from 202m and
31m at 67.49% Fe from 230m in DT62;
 13m at 65.43% Fe from 232m in DT56;
 5m at 61.43% Fe from 245m in DT53.
All intercepts were calculated for greater than 58% Fe cut.
 A Scoping Study has commenced on the
development of the Meletse Deposit, with the
report due during the March Quarter 2011.
CORPORATE
 The Company announced a 1 for 10 bonus
issue in November.
 The Company issued 19,166,400 shares
following the exercise of options during
December.
 The Company?s Isaac Plains loan facility was
fully repaid during the Quarter.
 Cash and liquid investments total approximately
$288.2 million at the end of the Quarter.
 Additional staff employed during the Quarter to
meet Aquila?s expansion requirements.
MANGANESE
Avontuur Manganese Project
 Diamond and RC drilling continued during the
Quarter at the Gravenhage Manganese Deposit
with significant (>40% Mn) intercepts including:
 1.9m at 47.2% Mn from 229m in GHEX006
 2.7m at 40.4% Mn from 122m in GHEX012
 1.5m at 45.9% Mn from 82m in GHEX155
 2.0m at 47.7% Mn from 83m and 2m at
42.8% Mn from 87m in GHEX156
 3.5m at 42.8% Mn from 127m in GHEX164
 4.0m at 43.7% Mn from 94m in GHEX183
 4.0m at 43.8% Mn from 87m in GHEX184
 1.5m at 46.1% Mn from 93m in GHEX201
 1.53m at 41.2% Mn from 130m in GHEX202
 4.5m at 42.2% Mn from 70m in GHEX207
 2.6m at 40.2% Mn from 265.28m in
GHEX209
 5.0m at 40.6% Mn from 99m and 3.5m at
40.8% Mn from 108m in GHOP002
 4.1m at 43.3% Mn from 88m and 2.3m at
42.6% Mn from 94m in GHOP004
 2.3m at 45.3% Mn from 65m and 2.1m at
42.4% Mn from 69m in GHOP006
 An updated JORC Resource for the Gravenhage
Manganese Deposit is due to be released early
in 2011.
 The Feasibility Study for the development of the
Gravenhage Deposit has commenced.
 An application for a Mining Right for the
Avontuur Manganese Project has been
submitted to the Department of Minerals and
Resources in South Africa, along with a draft
Social and Labour Plan.
COAL
AQA Quarterly Report ? December 2010 4
ISAAC PLAINS COAL MINE
(Aquila Resources Limited 50%)
Isaac Plains Coal Mine is an operating open cut
coal mine located east of Moranbah in the Bowen
Basin in central Queensland. The coal products are
a mix of metallurgical and thermal coals, which are
exported through Dalrymple Bay Coal Terminal
(DBCT).
Production
Isaac Plains? operational results during the Quarter
were impacted heavily by adverse weather. During
December, the area received 350mm of rainfall
which exceeded the previous December record of
318mm by 32mm and the average December
rainfall of 97mm by 253mm.The rainfall principally
came in two specific events which resulted in loss
of access to the mine and flooding of the N1 pit and
the CHPP. Force majeure was declared on the
existing sales contracts due to the inability of the
mine to process and deliver coal while recovery and
repairs were undertaken.
CHPP Flooding at Isaac Plains Coal Mine
Major Project activities during the Quarter
 There were no Lost Time Injuries (LTIs) during
the Quarter with the 12 month rolling average
LTI Frequency Rate for the mine being
maintained at zero LTIs per million man hours
worked.
 A total of 5.9M bank cubic metres (bcm) of
overburden was moved, which was below
budget for the period. The main loss of
production was recorded in December where
movement was 75% below budget.
 A total of 394Kt of saleable coal was produced
during the Quarter. Again this result was under
budget mainly due to mining and CHPP
downtime during December. The yield, however,
averaged 84% which was an excellent result
despite the volume reduction.
 The dragline construction lost minimal time due
to the weather impact and remains on schedule
to be completed and operational in the June
Quarter 2011.
Isaac Plains Coal Mine
After rain has been dewatered and mined
Table 1 ? Isaac Plains Coal Mine Production Results
Calendar Quarter Financial YTD
December
2009
September
2010
December
2010 2010 2011
Overburden BCM 5,431,898 9,558,413 5,917,493 11,948,372 15,475,906
Mining Tonnes 571,157 933,441 422,709 1,587,286 1,356,150
CHPP Feed Tonnes 796,210 938,670 466,485 1,678,740 1,405,155
CHPP Product Tonnes 601,910 684,986 390,870 1,271,030 1,075,856
Yield % 75.6% 73.0% 84.1% 75.7% 76.6%
Railings Tonnes 751,959 643,569 453,165 1,513,911 1,096,734
Shipping Tonnes 775,445 491,961 625,388 1,497,612 1,117,349
COAL
AQA Quarterly Report ? December 2010 5
Table 2 ? Isaac Plains Coal Mine Sales Results (tonnes)
Calendar Quarter Financial YTD
December
2009
September
2010
December
2010 2010 2011
Coking Coal 177,576 74,053 106,382 413,084 180,435
PCI 221,927 217,574 313,623 286,485 531,197
Thermal Coal 375,942 200,334 205,383 798,043 405,717
Total 775,445 491,961 625,388 1,497,612 1,117,349
Coal Sales
 Isaac Plains Coal Mine recorded 625Kt of coal
sales during the Quarter which was an excellent
result considering the impact of the wet weather
late in the Quarter. There were no sales in
December with the mine declaring Force
majeure due to the rain events. These sales will
be delayed into 2011.
 The Company, through its 100% subsidiary IP
Coal Pty Ltd, assumed marketing responsibility
for its 50% share of product from the Isaac
Plains mine from 15 November 2010. The first
sale under the new arrangements has been
completed with a shipment of 75Kt semi soft
coking coal due for despatch during the March
Quarter 2011.
EAGLE DOWNS HARD COKING COAL
PROJECT
(Aquila Resources Limited 50%)
Eagle Downs Hard Coking Coal Project is a
proposed underground longwall coal mine located
to the south of Moranbah in the Bowen Basin and
immediately adjacent to and down dip of BHPB
Mitsubishi Alliance?s Peak Downs Mine.
A Definitive Feasibility Study (DFS) is currently
being undertaken and, subject to securing
appropriate rail and port capacity for the Project,
completion is due in the June Quarter 2011.
The Project schedule contemplates commencing
construction in 2011 with longwall production
commencing in 2014, initially at a rate of up to
4.6Mtpa from a single longwall. The study includes
an expansion case with the introduction of a second
longwall to increase production to 8Mtpa from 2020.
Major Project activities during the Quarter
 There were no Lost Term Injuries (LTIs) during
the Quarter with the 12 month rolling average
LTI Frequency Rate for the Eagle Downs Hard
Coking Coal Project being maintained at zero
LTIs per million man hours worked.
 The field work programme continued during the
Quarter but was hampered by rainfall from
November. The balance of the programme will
be completed in the March Quarter 2011. Work
completed during this Quarter included:
 The 2D seismic programme was completed
and interpretation undertaken.
 Quality tests were completed on the first
large diameter quality core.
 Geotechnical drilling on the shaft and drift
sites was commenced.
 Work continued on the Definitive Feasibility
Study (DFS).
 The design for the underground mine layout
in all three target seams was finalised and
scheduled.
 The technical reports for underground,
surface infrastructure and CHPP design
continued.
 Tender packages for all areas were
completed and released. A number of these
have already closed and are being evaluated.
 QR has commenced undertaking a review of
the rail loop design.
 Approvals
 Eagle Downs Environmental Management
Plan is being reviewed by the Department of
Environment Resource Management (DERM)
with the expectation that a draft
Environmental Approval will be issued during
the March Quarter 2011.
 Negotiations for landowner compensation
agreements continued this Quarter.
 Logistics
 An expression of interest (EOI) was lodged
for the Stage 2 expansion of the Wiggins
Island Coal Terminal (WICT). This is
presently scheduled to be available between
2015 and 2016.
COAL
AQA Quarterly Report ? December 2010 6
 The Project remains in the queue for the next
expansion of the Dalrymple Bay Coal
Terminal (DBCT) which is not expected to be
available before the end of calendar 2016 at
the earliest.
 The Manager is preparing an EOI for
capacity at the new expansion at Abbot Point
Coal Terminal (APCT) which is expected to
be available in 2016.
 The legal proceedings which were
commenced by a subsidiary of the Company,
following the decision by a subsidiary of Vale
not to support the Abbot Point and GAPE
offers of port and rail capacity, continued to
be progressed towards a 2011 trial date.
WASHPOOL HARD COKING COAL PROJECT
(Aquila Resources Limited 100%)
The Washpool Hard Coking Coal Project is located
north west of Blackwater in the Bowen Basin. It is a
proposed open cut hard coking coal mine.
The Project schedule contemplates commencement
of construction to follow the grant of the Mining
Lease in mid 2012. Production is planned to
commence early 2013 targeting annual production
of 2.6Mtpa.
A DFS is currently being undertaken and
completion is due in the September Quarter 2011.
The completed study will inform the development
decision for the Project.
Major Project Activities during the Quarter
Definitive Feasibility Study Progress
 The exploration programme being undertaken
for the DFS has been delayed due to the wet
weather and is expected to commence during
the March Quarter 2011.
 The studies for the DFS have been tendered
and awarded and commenced during the
Quarter.
 The surface infrastructure study is being
undertaken by GHD.
 The CHPP study is being undertaken by DRA
Pacific.
 The mining study is being undertaken by
Xenith.
 Initial mining studies undertaken in the DFS
indicated that the annual production from the
mine should be increased from the 1.6Mtpa
considered in the Feasibility Study to 2.6Mtpa
due to favorable unit cost considerations. The
Project is now targeting the revised output.
Project Logistics
The Washpool Project is one of the eight Stage 1
Participants of the Wiggins Island Coal Terminal.
During the Quarter, the WICET project progressed
under the Capacity Commitment Deed (CCD)
funding provided by the Participants. This funding
has enabled WICET to appoint Worley Parsons as
its PCM contractor and approach both the domestic
and international financial markets. Significant
contracts as required under the mandate that
WICET has from the Queensland Government were
concluded during the Quarter.
The Stage 1 Participants were granted
authorisation during the Quarter from the Australian
Competition and Consumer Commission (ACCC) to
collectively negotiate with QR for the construction of
the required infrastructure to support the new coal
terminal. This was to allow the parties to deal with
the monopoly position that QR has over the rail
infrastructure in Queensland. This situation was
exacerbated during the Quarter when the
Queensland Government privatised QR through a
float on the Australian Stock Exchange. As
negotiations have reached an impasse at the
commercial level, this matter is now being brought
to the Queensland Competition Authority (QCA).
Negotiations for above rail services have continued
with offers being evaluated during the Quarter.
Approvals
The Draft EIS was submitted to DERM on 23
December, 2010. This commences the review
period DERM has to review the EIS against the
Terms of Reference prior to the document going out
for public review which is expected during the
March Quarter 2011.
Onsite Groundwater Bore
COAL
AQA Quarterly Report ? December 2010 7
TALWOOD COKING COAL PROJECT
(Aquila Resources Limited 100%)
The Talwood Coking Coal Project is a potential
underground coking coal mine, which would target
the Leichhardt and Vermont seams in the Rangal
coal measures. The Project area is located northwest
of Moranbah in the Bowen Basin and is
located immediately adjacent to BHPB Mitsubishi
Alliance?s Goonyella Riverside Hard Coking Coal
Mine.
Project Activities during the Quarter
The exploration programme for the Project was
completed during the Quarter.
Work commenced on the Project Concept study
report which is scheduled to be completed in the
June Quarter 2011. This Study is reviewing mining
options in the three seams which have mineable
targets; the Leichhardt and Vermont Seams from
the Rangal Coal Measures along with the thick
Middle Goonyella seam from the Moranbah Coal
Measures. The target seams, while continuous
throughout the tenement have distinct mining
domains, based on mining thickness and quality.
The Leichhardt seam at its shallowest is at a depth
of 50m and dips at about 1 in 10 throughout much
of the tenement.
Updated Resource Estimate
The total Resource has increased significantly from
83.4Mt (in April 2009) to 246.6Mt (Dec 2010). In
addition there has been a significant improvement
in JORC classification of the Resource status from
23.8Mt Indicated and 59.6Mt Inferred to 137.1Mt
Indicated and 109.4Mt Inferred.
Recent work involved:
 The drilling of an additional 62 holes across the
tenement, with 21 cored holes.
 Identification of mining domains from the target
seams based on coal thickness and quality.
 Coal quality investigations which highlighted the
various properties of the upper two seams.
 The addition of 21 cored bores, with both raw
and clean coal results, have been processed
since the previous Resource Statement was
released.
 Four holes have drilled through the Moranbah
Coal Measures and confirmed the continuation
of a 5m+ thick Middle Goonyella seam.
The outcomes of this work include:
 Total Resource of 246.5Mt.
 Indicated Resources have increased
substantially to 137.1Mt.
 Tonnage results by seam are detailed in Table 3
below .
 Clear and defined mining domains for the target
seams.
 Yields for the Leichhardt seam peak at 78% for
a combined Coking and Thermal product (F1.50
@ 9.9% Ash) and average 63.6% (F1.50 @
10.9% Ash).
 Yields for the Vermont seam peak at 65% for a
combined Coking and Thermal product exbands
(F1.50 @ 10.4% Ash) and average 48.5%
(F1.50 @ 11.9% Ash).
This has resulted in a significantly more detailed
and robust geological model, with a clearer
definition of the mining domains of the upper seams
and a better understanding of seam thickness and
coal quality.
With future work it is expected that:
 Resource definition will continue to improve
reported tonnages and increase confidence
levels for the Leichhardt seam.
 Further exploration will see the Vermont seam
improve its Resources status.
 Further holes will target the Goonyella seams
and determine coal quality parameters.
Following further exploration and completion of the
mining studies, an assessment of Reserves will be
undertaken with a view to development of an
underground longwall mining operation.
Table 3 ? Total In-Situ Coal Resource Statement ? Talwood Coking Coal Project
Seam
Measured
Million Tonnes
Mt
Indicated
Mt
Total Measured
and Indicated
Mt
Inferred
Mt
Total Measured
Indicated &
Inferred
Mt
Upper Leichhardt - 50.3 50.3 10.6 60.9
Vermont1 - 68.3 68.3 32.5 100.8
Middle Goonyella - 18.5 18.5 66.3 84.8
Total - 137.1 137.1 109.4 246.5
1. The Vermont Seam contains a tuff band, the tonnage of which has been omitted from the Resource Statement calculations.
IRON ORE
AQA Quarterly Report ? December 2010 8
WEST PILBARA IRON ORE PROJECT
(Aquila Resources Limited 50%)
The West Pilbara Iron Ore Project is a proposed
?direct ship? iron ore operation, the first stage of
which is expected to export 30Mtpa from a new
multi-user port at Anketell Point.
DEVELOPMENT
Approvals
Conditional approval was granted by the Joint
Venture Participants to undertake mine
development for Stage 1 of the West Pilbara Iron
Ore Project.
The Public Environmental Review (PER) document
for the development of Anketell Port was released
for a public review period that closes on
28 February 2011. The PER provides for the
environmental approval of a multi-user port, in
addition to the specific port infrastructure
requirements of the West Pilbara Iron Ore Project.
The public review of the PER describing the mine
and rail elements of the Project was completed
during the Quarter and a full response to public
submissions was submitted to the State Office of
the Environmental Protection Authority (OEPA).
The OEPA accepted the response and commenced
assessment of the proposal, with a report of its
assessment expected during the March Quarter
2011.
Environmental surveys to provide baseline data
continued and a suite of management plans have
been drafted. Applications for a number of
secondary environmental approvals, to be
submitted in 2011, were also progressed during the
Quarter.
Preparatory discussions have been undertaken with
representative Native Title groups to commence
formal Native Title negotiations in 2011.
Mining and Processing
A maiden JORC Ore Reserve Estimate for the
Stage 1 development of 445Mt of Proven and
Probable Reserves was reported during the Quarter
and are detailed in Table 4 below. Product 2 is
intended for sale at the end of the Project life, if it
cannot be blended with suitable additional
resources yet to be defined.
Proven and Probable Reserves represent 74% of
the total Stage 1 development Measured and
Indicated Resource. New pit designs have resulted
in a significantly lower overburden to ore ratio of
1.13, previously 1.85, and a mine schedule for 15
years based on a production of 30Mtpa.
Product Development
The phased sinter test work programme,
investigating the potential to substitute West Pilbara
Fines (WPF) in sinter feed, has been completed. A
total of five test reports have been issued to all
Memorandum of Understanding (MoU) signatories,
with the sixth to be issued next Quarter, once the
report is completed.
Further consignments of WPF samples were
delivered to potential customers in China, Japan
and Korea for evaluation as part of the MoU
process. Various mills that had previously received
samples, have reported test work results.
Project sponsored and independent mill testing
have derived similar conclusions, that WPF can be
substituted or added to most sinter blends at levels
of up to 15%, with minimal impact on sinter
productivity and sinter properties.
An additional four MoU have been signed, resulting
in 38 MoU now in place with leading steel mills in
China, Japan, Korea and Taiwan. These MoU
outline the process for independent and mutual test
work, as well as evaluation of ore to determine the
market position of the WPF product.
This work, along with VIU analysis, will eventually
be used to support steel mills in providing Letters of
Intent to purchase ore once the project is in
production.
Table 4 ? Stage 1 Development Proved and Probable Reserves
Product Category
Tonnes
Mt
Fe
%
Al2O3
%
SiO2
%
P
%
LOI
%
Product 1
Proven 145.2 58.40 3.29 4.87 0.08 7.77
Probable 244.1 56.71 3.41 5.96 0.06 8.86
Total 389.3 57.34 3.37 5.55 0.07 8.45
Product 2
Proven 20.5 55.09 3.96 6.81 0.09 9.58
Probable 35.3 55.05 3.95 7.35 0.09 9.16
Total 55.8 55.07 3.96 7.15 0.09 9.31
TOTAL
Proven 165.7 57.99 3.38 5.11 0.08 7.99
Probable 279.4 56.50 3.48 6.13 0.06 8.90
Total 445.1 57.05 3.44 5.75 0.07 8.56
Waste 504.0
IRON ORE
AQA Quarterly Report ? December 2010 9
Engineering
Expressions of interests have been received, for the
provision of Project Managing Contractor (PMC)
services. In March Quarter 2011, a short list of
companies will be generated and tenders for PMC
services invited.
Geotechnical investigations continued along the rail
corridor. The second phase of offshore
geotechnical drilling near Anketell Point
commenced and will assist in detailed design and
the development of a dredging contract.
Expansion Projects
The Hardey Project Pre-Feasibility Study (PFS)
metallurgical work was completed during the period,
along with initial ?sighter? sinter testing, the results of
which proved positive. The PFS results are
expected to be reported during the March Quarter
2011.
The proposed product from the Hardey Project is a
100% direct ship fines product, which has sintering
characteristics similar to Rio?s Pilbara Blend Fines
(PBF) and BHPB?s Mt Newman Fines (MNF), at
20% and 10% replacement respectively.
EXPLORATION
Golder & Associates Pty Ltd completed the remodelling
of the West Pilbara Iron Ore Project
channel iron deposits of Catho Well (including
Catho Well North), Jewel, Cochrane, Cardo Bore
East, Cardo Bore North, Upper Cane, Trinity Bore,
Kens Bore and Kens Bore East.
An updated Resource Statement was completed
and released to the ASX during the Quarter. The
updated Resource Statement is summarised in
Table 5 and the location of the Deposits is shown in
Figure 1.
Exploration activity continued during the Quarter on
the exploration drilling of channel and detrital iron
targets. Work included:
 continuation of an RC drilling programme at the
Weckl prospect;
 commencement of a drilling programme for
beneficiation test work at the Weckl prospect;
 commencement of an RC drilling programme at
the Downey prospect;
 commencement of an RC drilling programme at
the Buckland Hills prospect;
 continuation of an infill RC drilling programme at
the Hardey Deposit.
Weckl
The Weckl prospect is prospective for detrital style
iron mineralisation. The main target consists of
three valleys - West Weckl, East Weckl and Central
Weckl. The three main channels drain to the north
where they converge and flow out onto the
relatively flat Weckl Plain.
RC drilling continued at the Weckl prospect during
the Quarter with 86 holes completed for 2,991m
drilled.
Table 5 ? Stage 1 Development Resource Statement
JORC
Classification Mt Fe
%
P
%
SiO2
%
Al2O3
%
S
%
Mn
%
MgO
%
LOI
%
Measured 209 57.8 0.079 5.29 3.56 0.013 0.029 0.082 7.95
Indicated 392 56.2 0.065 6.30 3.69 0.018 0.038 0.113 8.94
Inferred 86 55.4 0.061 6.85 3.86 0.019 0.049 0.136 9.38
TOTAL 687 56.6 0.069 6.06 3.67 0.017 0.037 0.106 8.69
IRON ORE
AQA Quarterly Report ? December 2010 10
Figure 1 ? Deposit and Prospect Locations
Better results (intercepts >20m) received from the
Weckl RC drilling included:
 24m @ 57.65% Fe, 2.22% Al2O3, 7.85% SiO2,
0.13% P, 0.01% S, 6.68% LOI from 16m in
WKRC092;
 20m @ 56.21% Fe, 2.64% Al2O3, 6.75% SiO2,
0.11% P, 0.03% S, 9.63% LOI from 16m in
WKRC140;
 20m @ 55.83% Fe, 1.47% Al2O3, 11.84% SiO2,
0.1% P, 0.02% S, 6.38% LOI from 18m in
WKRC141;
 24m @ 57.13% Fe, 3.38% Al2O3, 8.67% SiO2,
0.1% P, 0.02% S, 5.13% LOI from 6m in
WKRC206;
 22m @ 58.18% Fe, 2.5% Al2O3, 6.77% SiO2,
0.12% P, 0.02% S, 6.72% LOI from 6m in
WKRC214;
 30m @ 56.71% Fe, 3.33% Al2O3, 8.87% SiO2,
0.09% P, 0.02% S, 5.97% LOI from 16m in
WKRC218;
 22m @ 56.81% Fe, 2.47% Al2O3, 6.69% SiO2,
0.12% P, 0.02% S, 8.46% LOI from 8m in
WKRC270.
All intercepts were calculated for greater than 52% Fe cut.
The detrital mineralisation encountered varies in
iron grade from <50 to 60% with relatively high
silica and low to moderate alumina. Better quality
mineralisation is located in the upper drainages.
Validation of drill logs and production of first pass
sectional interpretation has commenced in
preparation for geological modelling and Resource
estimation.
Ten aircore drill holes for 291m were also
completed during the Quarter, with the aim of
collecting bulk composite samples for size fraction
analysis. The analysis will allow conclusions to be
drawn on the suitability of the detrital material for
beneficiation. Results of the size fraction analyses
are pending.
Aboriginal heritage surveys for the continuation of
100m X 100m infill drilling have commenced and
are approximately 80% completed.
Heritage surveying and infill drilling will continue at
the Weckl prospect next Quarter.
IRON ORE
AQA Quarterly Report ? December 2010 11
Table 6 ? Weckl Drill Hole Locations
Prospect Hole ID Easting Northing From Intercept Al2O3
%
SiO2
%
P
%
S
%
LOl
%
Fe
Cut
%
Weckl WKRC088 515806 7545217 28m 10m @ 54.00% Fe 6.27 13.36 0.030 0.010 2.25 52
Weckl WKRC090 515403 7545205 24m 8m @ 52.80% Fe 6.13 14.80 0.030 0.010 2.55 52
Weckl WKRC092 516204 7545604 16m 24m @ 57.65% Fe 2.22 7.85 0.130 0.010 6.68 52
Weckl WKRC102 515800 7546003 24m 10m @ 57.86% Fe 1.72 9.72 0.090 0.030 5.20 52
Weckl WKRC103 515598 7546003 22m 14m @ 55.89% Fe 1.53 13.06 0.100 0.010 4.84 52
Weckl WKRC109 514402 7546406 18m 6m @ 56.87% Fe 3.10 9.38 0.080 0.010 3.52 52
Weckl WKRC117 512998 7546728 4m 8m @ 52.80% Fe 6.59 13.30 0.040 0.020 3.05 52
Weckl WKRC124 512998 7547196 26m 6m @ 54.50% Fe 3.34 8.58 0.050 0.010 9.75 52
Weckl WKRC134 512409 7548000 8m 14m @ 55.19% Fe 2.38 11.77 0.060 0.030 6.18 52
Weckl WKRC135 510607 7545609 30m 10m @ 55.86% Fe 1.23 13.27 0.090 0.020 4.88 52
Weckl WKRC136 510798 7545595 18m 16m @ 56.22% Fe 1.33 11.59 0.160 0.020 6.08 52
Weckl WKRC138 509999 7546396 14m 12m @ 56.20% Fe 5.16 10.83 0.040 0.010 2.52 52
Weckl WKRC140 510402 7546379 16m 20m @ 56.21% Fe 2.64 6.75 0.110 0.030 9.63 52
Weckl WKRC141 510596 7546376 18m 20m @ 55.83% Fe 1.47 11.84 0.100 0.020 6.38 52
Weckl WKRC206 512907 7543990 6m 24m @ 57.13% Fe 3.38 8.67 0.100 0.020 5.13 52
Weckl WKRC208 513107 7544423 14m 12m @ 53.67% Fe 3.77 12.68 0.070 0.040 5.59 52
Weckl WKRC209 512920 7544797 24m 14m @ 54.03% Fe 4.98 11.53 0.060 0.020 5.11 52
Weckl WKRC212 512893 7546000 14m 12m @ 54.68% Fe 5.21 12.55 0.050 0.010 2.56 52
Weckl WKRC214 517007 7543560 6m 22m @ 58.18% Fe 2.50 6.77 0.120 0.020 6.72 52
Weckl WKRC215 516797 7543584 14m 18m @ 56.98% Fe 2.94 5.98 0.140 0.020 8.85 52
Weckl WKRC216 516611 7543594 4m 14m @ 55.36% Fe 2.88 8.61 0.120 0.020 8.35 52
Weckl WKRC218 516190 7544012 16m 30m @ 56.71% Fe 3.33 8.87 0.090 0.020 5.97 52
Weckl WKRC219 515992 7543995 12m 14m @ 58.23% Fe 3.39 9.58 0.040 0.020 2.78 52
Weckl WKRC223 515881 7544405 18m 10m @ 53.82% Fe 4.70 15.68 0.040 0.010 1.82 52
Weckl WKRC227 515287 7545214 24m 10m @ 53.14% Fe 4.00 10.92 0.090 0.020 8.22 52
Weckl WKRC230 515888 7545218 8m 12m @ 52.33% Fe 5.68 15.95 0.030 0.010 2.54 52
Weckl WKRC234 515510 7545596 30m 10m @ 55.48% Fe 4.59 11.92 0.050 0.010 3.06 52
Weckl WKRC237 515690 7545995 24m 18m @ 55.53% Fe 1.69 12.98 0.120 0.010 5.23 52
Weckl WKRC238 515490 7545998 20m 12m @ 53.32% Fe 2.52 11.34 0.110 0.020 9.01 52
Weckl WKRC239 515414 7546000 18m 6m @ 53.67% Fe 4.37 11.36 0.080 0.030 5.67 52
Weckl WKRC257 512894 7547141 10m 10m @ 55.64% Fe 4.60 6.87 0.060 0.040 7.23 52
Weckl WKRC268 510703 7545615 16m 16m @ 57.64% Fe 0.76 10.87 0.110 0.030 5.48 52
Weckl WKRC269 510899 7545597 18m 8m @ 52.95% Fe 1.59 14.92 0.110 0.020 7.15 52
Weckl WKRC270 511078 7545950 8m 22m @ 56.81% Fe 2.47 6.69 0.120 0.020 8.46 52
Weckl WKRC271 510907 7545988 20m 6m @ 54.17% Fe 1.26 13.47 0.120 0.010 7.19 52
Weckl WKRC272 510703 7545985 20m 14m @ 56.82% Fe 1.39 10.43 0.100 0.020 6.32 52
Weckl WKRC273 510690 7546393 10m 10m @ 57.28% Fe 2.83 6.52 0.080 0.030 7.42 52
Weckl WKRC274 510520 7546399 28m 6m @ 58.58% Fe 1.32 6.70 0.140 0.020 7.65 52
Weckl WKRC275 510294 7546381 10m 6m @ 56.40% Fe 3.75 8.78 0.060 0.040 5.76 52
Weckl WKRC285 511092 7547217 12m 8m @ 54.75% Fe 4.62 12.22 0.060 0.020 3.40 52
Weckl WKRC292 509689 7547596 18m 8m @ 53.48% Fe 6.68 12.84 0.050 0.010 2.64 52
IRON ORE
AQA Quarterly Report ? December 2010 12
Figure 2 ? Weckl Drill Hole Locations
Figure 3 ? Downey Drill Hole Locations
IRON ORE
AQA Quarterly Report ? December 2010 13
Downey
The Downey prospect is located north-west of
Weckl at the confluence of several creek systems,
where channels merge from the east, west and
south of the Weckl plain. The majority of
sedimentary input is likely to have been from the
south, where the headwater creeks of the Weckl
system are located approximately 10km away.
The Downey drilling aimed to test two alternate
styles of mineralisation:
 Reworked channel iron or detrital material
originating from the Weckl area below the
surface cover; and/or
 Remnant channel iron material present in an
interpreted tributary of the Robe River, below the
surface cover.
During the Quarter, a total of 169 RC drill holes
were completed for a total of 5,166m drilled. Better
results (intercepts >15m) received from the RC
drilling included:
 18m @ 54.88% Fe, 2.42% Al2O3, 7.49% SiO2,
0.06% P, 0.01% S, 10.9% LOI from 10m in
DORC016;
 18m @ 56.40% Fe, 3.91% Al2O3, 6.56% SiO2,
0.11% P, 0.01% S, 8.05% LOI from 18m in
DORC031;
 30m @ 54.29% Fe, 2.99% Al2O3, 8.29% SiO2,
0.08% P, 0.01% S, 10.41% LOI from 4m in
DORC053;
All intercepts were calculated for greater than 52% Fe cut.
A full set of intercepts (>5m) are reported in Table 7
and Figure 3 shows the location of these drill holes.
To the north, an outcropping channel iron formation
is present. RC drilling indicates that it is
approximately 30m thick and reaches a maximum
thickness of 45m.
To the south, east and west, RC drilling, preliminary
drill hole validation and sectional interpretation have
indicated a continuous, thin blanket of recent
colluvial gravels and alluvial detritals up to 10m
thick, covering a highly variable canga unit that is
often strongly cemented by vitreous goethite.
Additional infill drilling has been planned in the
north, where better assay results have been
returned.
Table 7 ? Downey Intercepts
Prospect Hole ID Easting Northing From Intercept Al2O3
%
SiO2
%
P
%
S
%
LOl
%
Fe
Cut
%
Downey DORC006 510803 7557399 8m 10m @ 53.46% Fe 3.99 9.58 0.060 0.010 9.24 52
Downey DORC007 510800 7557204 10m 6m @ 54.17% Fe 3.09 11.50 0.040 0.010 7.22 52
Downey DORC013 509993 7557996 16m 12m @ 54.23% Fe 3.63 7.42 0.090 0.010 9.98 52
Downey DORC015 509994 7557004 16m 10m @ 54.00% Fe 3.80 7.55 0.060 0.010 10.83 52
Downey DORC016 510008 7556806 10m 18m @ 54.88% Fe 2.42 7.49 0.060 0.010 10.90 52
Downey DORC023 509299 7557998 6m 10m @ 54.95% Fe 3.35 7.69 0.080 0.010 9.80 52
Downey DORC031 507999 7559408 8m 6m @ 55.30% Fe 4.31 6.55 0.060 0.010 9.53 52
Downey DORC031 507999 7559408 18m 18m @ 56.40% Fe 3.91 6.56 0.110 0.010 8.05 52
Downey DORC034 508196 7559007 2m 8m @ 53.17% Fe 3.61 8.68 0.060 0.010 11.02 52
Downey DORC034 508196 7559007 24m 8m @ 55.95% Fe 2.99 7.99 0.120 0.010 8.31 52
Downey DORC035 508207 7558604 6m 8m @ 54.50% Fe 3.49 7.19 0.050 0.010 10.86 52
Downey DORC036 508199 7558201 8m 6m @ 52.77% Fe 3.14 10.98 0.060 0.010 9.61 52
Downey DORC047 508200 7556198 20m 10m @ 55.26% Fe 3.24 7.45 0.070 0.010 9.77 52
Downey DORC050 508234 7557401 14m 6m @ 54.13% Fe 2.76 8.29 0.050 0.010 11.00 52
Downey DORC051 508202 7557593 4m 8m @ 54.63% Fe 3.13 9.91 0.050 0.020 7.96 52
Downey DORC052 508203 7557792 4m 14m @ 55.99% Fe 2.41 8.38 0.060 0.010 8.50 52
Downey DORC053 508198 7558001 4m 30m @ 54.29% Fe 2.99 8.29 0.080 0.010 10.41 52
Downey DORC058 507808 7555600 14m 6m @ 55.37% Fe 2.54 9.02 0.040 0.020 8.70 52
Downey DORC069 508003 7557401 10m 8m @ 55.35% Fe 2.81 7.72 0.060 0.010 9.76 52
Downey DORC073 507396 7556208 12m 6m @ 52.23% Fe 2.45 11.20 0.050 0.020 10.77 52
IRON ORE
AQA Quarterly Report ? December 2010 14
Buckland Hills
During the Quarter a temporary exploration camp
was established at the Buckland Hills prospect.
Heritage surveys were completed and a first pass
RC drilling programme commenced. A total of 117
RC drill holes for 8,474m were drilled in the
Quarter. See Figure 4 for the drill hole locations.
The Buckland Hills prospect area is located within a
tributary of the Bungaroo Creek and the drilling
targeted a buried CID body constrained by the
morphology of the present-day drainage. Better
drill hole intersections indicate up to 184m of
mineralised CID in the centre of the channel under
approximately 35m of alluvial cover. Initial drilling
indicates a U-shaped channel between 500 and
700m wide within which are layers of CID units with
variable clay and pisoid content. The assessment
of the current drilling is ongoing and assays results
from the centre of the channel are pending.
Hardey
Continued exploration effort has focussed on infill
drilling to increase the understanding of the bedded
iron mineralisation at the Hardey deposit. A total of
72 RC drill holes for 11,386m were drilled in the
Quarter (Figure 5). The infill drilling programme has
been planned to refine the ore envelopes and
improve geological understanding. Better results
(intercepts >80m) received from the infill RC drilling
programme include:
 90m @ 59.58% Fe, 3.59% Al2O3, 5.04% SiO2,
0.129% P, 0.005% S, 5.55% LOI from surface in
HARC287;
 138m @ 63.12% Fe, 1.6% Al2O3, 3.02% SiO2,
0.142% P, 0.004% S, 4.4% LOI from surface in
HARC329;
 128m @ 60.89% Fe, 2.76% Al2O3, 4.64% SiO2,
0.153% P, 0.006% S, 4.8% LOI from surface in
HARC351;
 84m @ 62.54% Fe, 1.32% Al2O3, 3.99% SiO2,
0.122% P, 0.002% S, 4.81% LOI from 64m in
HARC356;
 106m @ 62.58% Fe, 1.95% Al2O3, 2.62% SiO2,
0.178% P, 0.001% S, 5.2% LOI from 10m in
HARC361;
 108m @ 62.31% Fe, 2.42% Al2O3, 3.12% SiO2,
0.14% P, 0.004% S, 4.74% LOI from 26m in
HARC366.
All intercepts were calculated for greater than 58% Fe cut.
A full set of intercepts (>40m) are reported in Table
8 and Figure 5 shows the location of these drill
holes.
Sectional and drill hole validation has commenced
in preparation for remodelling of the Hardey
deposit. Preliminary mineralisation envelopes have
been created in preparation for revision of the
Resource Statement.
Figure 4 ? Buckland Hill Drill Hole Locations
IRON ORE
AQA Quarterly Report ? December 2010 15
Figure 5 ? Hardey Drill Hole Locations
Table 8 ? Hardey Intercepts
Prospect Hole ID Easting Northing From Intercept Al2O3
%
SiO2
%
P
%
S
%
LOl
%
Fe
Cut
%
Hardey HARC276 529999 7462253 4m 62m @ 62.60% Fe 1.91 3.85 0.096 0.000 4.22 58
Hardey HARC277 530000 7462349 8m 40m @ 62.06% Fe 2.22 4.00 0.125 0.001 4.47 58
Hardey HARC278 529999 7462299 16m 42m @ 58.57% Fe 3.51 6.15 0.123 0.001 6.01 58
Hardey HARC279 529999 7462401 12m 40m @ 61.64% Fe 1.83 5.24 0.109 0.003 4.12 58
Hardey HARC282 529797 7462401 2m 58m @ 64.06% Fe 1.32 3.12 0.094 0.002 3.48 58
Hardey HARC284 529801 7462501 0m 42m @ 60.40% Fe 2.50 5.00 0.130 0.011 5.58 58
Hardey HARC285 529798 7462452 6m 56m @ 59.28% Fe 3.71 5.95 0.104 0.003 5.02 58
Hardey HARC287 529702 7462527 0m 90m @ 59.58% Fe 3.59 5.04 0.129 0.005 5.55 58
Hardey HARC288 529703 7462556 14m 62m @ 61.10% Fe 2.86 3.91 0.144 0.003 5.23 58
Hardey HARC289 529654 7462508 0m 66m @ 62.48% Fe 1.41 2.85 0.119 0.002 5.92 58
Hardey HARC290 529705 7462484 16m 66m @ 60.38% Fe 2.87 5.14 0.146 0.003 5.05 58
Hardey HARC293 529894 7462362 2m 52m @ 61.10% Fe 1.99 4.77 0.142 0.006 5.36 58
Hardey HARC296 529694 7462432 30m 66m @ 64.18% Fe 1.40 1.96 0.136 0.003 4.47 58
Hardey HARC297 529608 7462511 2m 50m @ 58.53% Fe 3.76 6.04 0.139 0.005 5.99 58
Hardey HARC310 529497 7462249 0m 42m @ 60.93% Fe 3.05 4.34 0.132 0.024 4.77 58
Hardey HARC317 530047 7462299 12m 42m @ 59.56% Fe 2.77 5.14 0.176 0.005 5.81 58
Hardey HARC318 529716 7462350 76m 46m @ 61.34% Fe 1.87 5.14 0.158 0.002 4.82 58
Hardey HARC321 529801 7462280 74m 58m @ 62.64% Fe 0.76 4.66 0.115 0.002 4.53 58
Hardey HARC328 530049 7461849 0m 68m @ 61.82% Fe 1.87 2.80 0.151 0.004 6.08 58
Hardey HARC329 530100 7461856 0m 138m @ 63.12% Fe 1.60 3.02 0.142 0.004 4.40 58
Hardey HARC330 529997 7461763 2m 66m @ 63.42% Fe 2.21 2.32 0.146 0.005 4.01 58
Hardey HARC331 530017 7461792 0m 64m @ 63.46% Fe 1.59 2.57 0.133 0.007 4.33 58
Hardey HARC332 529996 7461849 50m 50m @ 59.69% Fe 3.50 4.41 0.161 0.003 5.85 58
Hardey HARC333 529949 7461835 2m 44m @ 61.60% Fe 2.91 3.26 0.129 0.003 5.12 58
IRON ORE
AQA Quarterly Report ? December 2010 16
Prospect Hole ID Easting Northing From Intercept Al2O3
%
SiO2
%
P
%
S
%
LOl
%
Fe
Cut
%
Hardey HARC335 529936 7461883 36m 78m @ 63.22% Fe 1.34 2.01 0.136 0.003 5.66 58
Hardey HARC336 530202 7461949 32m 50m @ 62.20% Fe 1.77 3.40 0.142 0.002 5.28 58
Hardey HARC337 530244 7461986 48m 52m @ 63.18% Fe 1.35 2.23 0.146 0.002 5.38 58
Hardey HARC338 530246 7461999 26m 60m @ 61.35% Fe 1.53 4.03 0.134 0.006 6.11 58
Hardey HARC351 530260 7461781 0m 128m @ 60.89% Fe 2.76 4.64 0.153 0.006 4.80 58
Hardey HARC352 530348 7461766 18m 70m @ 63.37% Fe 1.86 2.48 0.158 0.002 4.43 58
Hardey HARC353 530155 7461747 6m 70m @ 63.29% Fe 1.84 1.76 0.161 0.006 5.15 58
Hardey HARC354 530045 7461797 16m 54m @ 63.87% Fe 1.97 2.71 0.118 0.002 3.48 58
Hardey HARC355 530158 7461898 40m 52m @ 63.42% Fe 1.62 2.27 0.151 0.002 4.77 58
Hardey HARC356 530162 7461906 64m 84m @ 62.54% Fe 1.32 3.99 0.122 0.002 4.81 58
Hardey HARC357 530496 7461830 2m 62m @ 60.92% Fe 2.38 3.60 0.194 0.003 6.04 58
Hardey HARC359 530451 7461897 14m 76m @ 62.24% Fe 1.79 4.71 0.141 0.002 3.89 58
Hardey HARC360 530507 7461940 4m 50m @ 63.17% Fe 1.16 1.99 0.139 0.010 5.77 58
Hardey HARC361 530350 7461887 10m 106m @ 62.58% Fe 1.95 2.62 0.178 0.001 5.20 58
Hardey HARC362 530299 7461879 46m 42m @ 62.65% Fe 2.25 2.30 0.194 0.003 5.08 58
Hardey HARC363 530244 7461866 32m 58m @ 62.41% Fe 2.29 2.20 0.189 0.004 5.47 58
Hardey HARC364 530036 7461697 44m 58m @ 60.13% Fe 3.03 4.49 0.169 0.023 5.56 58
Hardey HARC365 529998 7461597 22m 72m @ 61.83% Fe 2.43 2.55 0.185 0.009 5.83 58
Hardey HARC366 529900 7461690 26m 108m @ 62.31% Fe 2.42 3.12 0.140 0.004 4.74 58
Hardey HARC367 529805 7461690 52m 60m @ 61.42% Fe 3.39 4.29 0.107 0.004 3.94 58
Hardey HARC368 529751 7461705 40m 44m @ 61.95% Fe 2.90 3.63 0.111 0.007 4.28 58
Hardey HARC372 529705 7461803 18m 54m @ 62.17% Fe 2.14 2.53 0.141 0.013 5.79 58
Hardey HARC374 529800 7461876 94m 60m @ 61.66% Fe 2.54 3.65 0.140 0.000 4.98 58
Hardey HARC375 529808 7461999 70m 50m @ 62.12% Fe 2.16 3.41 0.144 0.002 4.90 58
Hardey HARC377 529721 7462023 72m 44m @ 60.46% Fe 2.11 5.51 0.133 0.001 5.16 58
Hardey HARC378 529474 7462080 60m 50m @ 62.86% Fe 2.25 2.59 0.153 0.001 4.74 58
Hardey HARC379 529479 7462096 2m 60m @ 60.85% Fe 3.82 3.99 0.167 0.001 4.53 58
Hardey HARC382 529598 7462073 78m 46m @ 63.44% Fe 1.97 2.60 0.155 0.002 3.97 58
Hardey HARC383 529645 7462050 38m 42m @ 63.32% Fe 1.66 2.82 0.116 0.002 4.20 58
Hardey HARC385 529804 7461746 0m 50m @ 62.40% Fe 1.98 2.72 0.137 0.017 5.41 58
SOUTH AFRICA
THABAZIMBI IRON ORE PROJECT
(Aquila Resources Limited 74%)
Exploration
An updated JORC Resource Statement for the
Meletse Deposit was released during the Quarter.
Golder Associates Africa (Pty) Ltd was
commissioned to construct a geological model and
update the in-situ Resource Statement. The
updated Resource of 47.6Mt at 62.9% Fe
represents a 117% increase on the earlier
Resource with approximately 33% of the updated
Resource now in the Indicated category.
The Meletse Iron Ore Deposit Resource Statement
is shown in Table 9 and the iron ore lodes that
make up the Deposit are shown in Figure 6.
The Deposit is composed of several irregular
shaped, hard, lumpy high grade (+60% Fe) iron ore
lodes, outcropping along a lateral extent in excess
of 600m. The iron ore lodes dip approximately 400
to the southwest near the outcrop and flatten to less
than 200 at the dip extent of the lodes. The iron ore
lodes bifurcate and coalesce in profile and are
gently folded along strike.
The lumpy hard ores consist mainly of martitehematite
assemblages and the basal and upper
contacts with the proto Banded Iron Formation are
gradational. The high grade hematite is suitable for
open pit mining of direct shipping ore (DSO) for
domestic and/or international customers.
IRON ORE
AQA Quarterly Report ? December 2010 17
During the Quarter, 11 RC drill holes were
completed for 3,127m with significant high-grade Fe
intercepts reported in Table 10. Figure 7 shows the
location of the drill holes completed during the
Quarter and the geology of the Meletse Iron Ore
Deposit area.
An extensive RC drilling programme continues at
the Deposit, which remains open along strike to the
north and at depth to the west. A second track
mounted RC drill rig is being mobilised to site in
February and a diamond drill rig is scheduled for
mid 2011.
New tracks have been constructed both down dip
and to the north of the Deposit, where greater
thicknesses of iron ore and higher grades have
been intercepted in recent drilling.
The ongoing drilling will continue to test the strike
and dip extent of the Deposit to increase both the
size of the current Resource and to upgrade the
JORC categories of the Resource.
An upgraded Resource Statement is expected in
the September Quarter-2011.
Geotechnical and metallurgical diamond core
drilling will provide data for consideration of a
decision to commence a feasibility study in mid-
2011.
Figure 8 shows the area of the current Deposit
Resource and the exploration target area to be drill
tested.
Table 9 ? Meletse Iron Ore Deposit Resource Statement
MELETSE IRON ORE RESOURCE
Resource
Classifications
Tonnes
Mt
Fe
%
SiO2
%
Al2O3
%
P
%
S
%
MnO
%
MgO
%
LOI
%
Indicated 15.9 63.6 6.22 1.07 0.031 0.045 0.783 0.076 1.00
Inferred 31.7 62.5 8.89 0.82 0.044 0.041 1.078 0.054 1.19
Total 47.6 62.9 8.00 0.91 0.040 0.043 0.979 0.061 1.13
Figure 6 ? Meletse Iron Ore Lodes
IRON ORE
AQA Quarterly Report ? December 2010 18
Table 10 ? Meletse Iron Ore Deposit Intercepts (>3m)
Projection GCS Hartbeesheok 94 (Lo27), Declination -90o, Reverse Circulation Drill Holes Below detection limit.
Hole ID Easting Northing From Intercept Al2O3 SiO2 P K2O LOl
% % % % %
DT38 -66810.09 2719649.76 254m 4m @ 61.56% Fe 1.63 9.46 0.02 0.01 0.95
DT38 -66810.09 2719649.76 288m 3m @ 62.06% Fe 2.27 5.05 0.01 0.08 2.60
DT40 -66698.84 2719298.82 200m 14m @ 64.55% Fe 0.75 5.58 0.01 0.10 0.63
DT55 -66380.37 2719462.94 306m 3m @ 60.22% Fe 1.24 9.91 0.03 0.24 1.12
DT50 -66701.64 2719296.86 148m 4m @ 60.45% Fe 0.50 9.57 0.03 0.10 2.72
DT50 -66701.64 2719296.86 159m 8m @ 60.02% Fe 0.45 10.19 0.03 0.10 2.34
DT50 -66701.64 2719296.86 182m 23m @ 66.14% Fe 0.19 3.22 0.02 0.11 0.41
DT50 -66701.64 2719296.86 246m 11m @ 61.22% Fe 0.72 7.39 0.04 0.13 1.08
DT56 -66426.93 2719354.69 273m 6m @ 55.19% Fe 0.59 2.66 0.08 0.53 3.01
DT53 -66360.18 2719336.08 248m 27m @ 62.83% Fe 0.36 7.69 0.02 0.10 0.41
DT60 -66552.73 2719555.54 210m 33m @ 65.75% Fe 0.61 4.06 0.06 0.14 0.74
DT62 -66613.03 2719644.93 182m 6m @ 62.36% Fe 0.88 8.12 0.07 0.16 1.16
DT62 -66613.03 2719644.93 202m 7m @ 62.31% Fe 0.49 10.46 0.04 0.10 0.89
DT62 -66613.03 2719644.93 230m 31m @ 67.49% Fe 0.58 1.36 0.08 0.12 0.42
DT65 -66605.75 2719271.48 232m 13m @ 65.43% Fe 0.24 4.61 0.02 0.10 0.37
DT67 -66481.24 2719281.94 245m 5m @ 61.43% Fe 1.42 3.82 0.06 0.22 1.99
Figure 7 ? Meletse Iron Ore Deposit Geology and Location of Drill Holes
IRON ORE
AQA Quarterly Report ? December 2010 19
Figure 8 ? Meletse Iron Ore Deposit Lodes, Resource extent and Exploration Target Area
Development
A Scoping Study has commenced on the
development of the Meletse Deposit. The study will
consider the possible mining options, as well as the
provision of utilities such as power and water, and
will include a comprehensive geotechnical study by
Golder & Associates.
A meeting was held with Transnet Freight Rail
(TFR) to consider the transport of iron ore from the
Meletse Deposit to the east coast for export to
Asian markets. TFR has agreed to review the
earlier studies into this proposal, in the context of
more recent plans for the development of
infrastructure for this region, with a new proposal to
be submitted for the Company?s consideration.
The Scoping Study is due for completion during the
March Quarter 2011, and subject to its findings, a
Feasibility Study is planned to commence during
the June Quarter 2011 with a completion date
scheduled during the June Quarter 2012.
MANGANESE
AQA Quarterly Report ? December 2010 20
SOUTH AFRICA
AVONTUUR MANGANESE PROJECT
(Aquila Resources Limited 74%)
Exploration
The Gravenhage Manganese Deposit is situated at
the northern end of the Company?s Avontuur
tenement, which is located approximately 30km
north of the Kalahari Manganese Field, South
Africa?s premier manganese producing area (see
Figure 9).
Drilling continued at the Gravenhage Deposit, with
39 drill holes completed or in progress at Quarter?s
end for 4,786m (diamond, RC and percussion precollar).
Significant intercepts are reported in Table
11 and are shown in Figure 10.
A programme of geotechnical diamond core drilling
(GHOP) and large diameter (LD) metallurgical
diamond core drilling also commenced during the
Quarter. High grade assays were received from the
geotechnical core drilling in the shallow area of the
Deposit with grades ranging from 42.3% Mn to
53.5% Mn over intervals ranging from 1.5m to
4.05m. The results of this drilling has confirmed and
enhanced the Resource model and supports the
mining of high grade manganese in an initial open
pit development
Exploration drilling on the Gravenhage Deposit
concluded during the Quarter, with an updated
Manganese Resource due to be released during
the March Quarter 2011. This updated Resource
Statement will form the basis for the proposed
Feasibility Study.
Figure 9 ? Location of Gravenhage and Eersbegint Manganese Deposits
MANGANESE
AQA Quarterly Report ? December 2010 21
Table 11 ? Gravenhage Manganese Deposit Intercepts
Hole
Number Easting (X) Northing (Y) From (m) Interval
(m)
Mn
%
Fe
%
SiO2
%
Al2O3
%
CaO
%
P2O5
%
LOI
%
GHEX006* 679001.26 7034821.76 229 1.9 47.20 6.00 4.63 0.23 7.48 0.05 11.27
GHEX012 679628.79 7034945.61 122 2.7 40.38 8.48 6.93 0.25 10.01 0.05 11.14
GHEX028 681003.65 7034822.27 136 5.5 36.49 12.04 9.29 0.32 6.53 0.09 9.39
GHEX103 679820.47 7034186.60 238 4.5 38.09 11.29 8.64 0.19 9.93 0.00 8.00
GHEX155 680510.31 7035227.76 82 1.5 45.87 15.57 2.21 0.43 0.57 0.08 9.91
GHEX156 680848.83 7035258.94
83 2.0 47.70 12.09 1.95 0.42 0.42 0.055 12.81
87 2.0 42.75 8.42 2.89 0.30 7.89 0.085 15.96
GHEX164 679545.49 7035020.06 127 3.5 42.84 21.95 2.83 0.32 2.62 0.16 1.91
GHEX169 679224.56 7033372.53 338 4.1 37.28 10.56 9.41 0.18 9.15 0.02 8.49
GHEX171 679805.27 7033447.50 297 1.6 39.76 12.72 10.98 0.25 2.29 0.02 6.08
GHEX175 678081.85 7033305.27 461 2.0 37.03 9.40 13.38 0.54 6.13 0.06 7.80
GHEX180 680851.62 7035183.20 98 1.5 35.33 12.17 16.93 1.25 0.88 0.10 10.89
GHEX181 680718.59 7035039.95 66 1.5 37.20 17.10 12.70 0.39 0.41 0.05 8.73
GHEX183 681282.49 7035067.42 94 4.0 43.71 8.88 9.14 0.29 6.82 0.06 8.92
GHEX184 681576.99 7034797.95 87 4.0 43.81 12.88 8.78 0.28 3.65 0.07 5.66
GHEX185 681448.72 7034650.06 107 3.5 38.06 12.53 8.61 0.32 8.21 0.06 7.79
GHEX186 682015.48 7034680.76 74 4.0 36.66 10.82 18.59 0.25 0.55 0.08 10.61
GHEX187 682164.34 7034552.34 104 4.5 38.58 11.78 9.10 0.28 7.85 0.06 9.58
GHEX188 682178.27 7034266.46 113 4.0 36.06 11.12 9.12 0.26 13.31 0.06 9.48
GHEX189 682044.12 7034100.09 123 5.5 39.21 10.78 8.71 0.28 10.69 0.06 8.70
GHEX190 681775.68 7033814.34 148 3.5 35.10 11.91 10.00 0.28 11.27 0.06 10.09
GHEX191 682472.80 7033996.51 83 1.5 39.03 9.74 19.29 0.23 0.95 0.07 8.32
GHEX192 682784.55 7033443.59 69 1.5 37.63 10.75 4.08 0.25 8.84 0.08 15.99
GHEX193 680785.80 7033912.12 134 1.3 34.13 11.24 17.93 0.33 3.80 0.07 6.78
GHEX195 681344.47 7033936.27 197 3.1 35.51 11.59 10.83 0.39 8.61 0.06 9.57
GHEX197 681637.63 7033664.67 166 3.5 35.64 12.40 10.62 0.49 7.41 0.07 8.95
GHEX198 681373.77 7033364.56 199 3.0 37.82 12.41 10.72 0.31 8.16 0.07 6.84
GHEX200 680720.18 7034887.42 82 2.5 38.54 20.46 2.04 0.52 2.96 0.08 10.26
GHEX201 681432.06 7034935.45 93 1.5 46.10 8.58 9.77 0.31 1.42 0.67 9.60
GHEX202 680186.79 7034442.16 130 1.5 41.17 13.43 13.02 0.43 0.15 0.08 4.75
GHEX203 681653.27 7034876.67
74 1.5 37.79 10.25 13.03 0.26 1.55 0.01 10.57
77 3.0 40.60 10.33 4.57 0.21 3.48 0.02 6.53
GHEX205 682245.71 7034339.40 100 3.5 38.40 12.16 9.66 0.22 10.75 0.02 6.50
GHEX206 682539.11 7034071.96
70 1.5 34.94 5.64 6.44 0.12 8.56 0.03 17.94
73 1.5 49.97 11.34 13.53 0.15 1.20 0.00 10.48
GHEX207 680941.74 7035289.77 70 4.5 42.18 11.10 4.90 0.22 1.83 0.03 11.00
GHEX209 679376.44 7034464.41 265 2.6 44.79 8.62 6.82 0.17 6.45 0.00 6.65
GHEX210 679303.92 7034659.36 180 3.0 37.70 13.50 13.10 0.40 8.28 0.07 4.79
GHOP002** 679998.74 7035039.08
99 5.0 40.63 15.52 2.92 0.31 2.72 0.11 12.16
108 3.5 40.76 10.99 8.36 0.37 8.17 0.07 8.54
GHOP004** 679898.70 7035138.16
88 4.0 43.26 15.59 6.53 0.34 3.60 0.11 6.57
94 2.3 42.56 10.42 6.84 0.36 4.14 0.08 11.31
GHOP006** 679799.63 7035238.19
65 2.3 45.26 13.34 4.66 0.32 0.37 0.09 10.23
69 2.1 42.43 16.55 4.86 0.27 0.46 0.13 9.65
Projection (WGS84 S34), Declination -90o, Diamond Drill Holes. * Resampled drill hole. ** Geotechnical diamond core drilling -700 /0000.
MANGANESE
AQA Quarterly Report ? December 2010 22
Figure 10 ? Location of Drill Holes with significant manganese intercepts
Exploration drilling is due to recommence during the
March Quarter on targets south of the Gravenhage
Deposit. Drilling late in the Quarter at Haakdoorn
intersected upper and lower manganese bodies,
separated by a mafic sill, similar to the
mineralisation style at Gravenhage.
Historical drilling at Haakdoorn intersected high
grade manganese and the area is a priority target
for structurally related hydrothermal upgrade of
manganese mineralisation.
Programmes of ground gravity and magnetics have
been completed and were interpreted during the
Quarter.
RC and diamond drilling is scheduled for early in
2011, with four target areas identified and shown in
Figure 11.
 Target A: To find a shallow lower manganese
body, which has been upgraded at
the basin edge by meteoric water
flows leaching out carbonates from
the manganese ore;
 Target B: To find shallow upper manganese
bodies that have been upgraded and
preserved due to structural changes
in the shape of the basin;
 Target C: To find upper manganese bodies at
shallow depths that have been
preserved and upgraded due to
interpreted localised thrust
structures;
 Target D: Strike and dip extensions of the
upper and lower manganese bodies
that have been recently drilled at
Haakdoorn.
MANGANESE
AQA Quarterly Report ? December 2010 23
Figure 11 ? Location of Exploration Drill Targets within the Avontuur Basin
Development
An application for a Mining Right for the Avontuur
Manganese Project was submitted to the
Department of Minerals and Resources in South
Africa during the Quarter, along with a draft Social
and Labour Plan. Confirmation that the application
complies with the requirements of the relevant Act
has been received from the Department.
Preparatory work for the Feasibility Study for the
development of the Gravenhage Deposit has
advanced during the period.
Geotechnical drilling was completed, with laboratory
results awaited before the final report can issue. A
large diameter drilling programme has been
initiated for the collection of sample for metallurgical
testing of the ore. Transnet Freight Rail officials inspecting large diameter core at
Gravenhage
MANGANESE
AQA Quarterly Report ? December 2010 24
Geotechnical Drilling at Gravenhage
Golder & Associates has revised the geological
model, incorporating the recent drilling results.
Once the model is completed, VBKOM Consulting
Mining Engineers will conduct the Mine Design
Study for the development of the Gravenhage
Deposit.
JLT Mining Services has been selected to conduct
the detailed engineering and infrastructure design
for this development.
Synergistics has completed an Environmental
Scoping Report and baseline studies for the
completion of an Environmental Impact
Assessment. The Environmental Scoping Study will
be submitted to the Department of Minerals and
Resources during the March Quarter 2011, in
support of the Mining Right application submitted
during the last Quarter.
As a member of the Ore Line Expansion Project
team, investigating the expansion of the Northern
Cape to Saldanha Bay export corridor, the
Company has been considering an FEL1 level
study of the various options for that expansion. The
Steering Committee for that Project will be
considering the outcomes of that study and any
future work during the March Quarter 2011.
Engineering studies for the Avontuur Manganese
Project will commence during the March Quarter
2011 with the Feasibility Study scheduled for
completion during the September Quarter 2011.
Subject to all necessary approvals, construction
could commence early in 2012. Subject to the
availability of rail and port capacity, first ore railed is
scheduled during the June Quarter 2013.
CORPORATE
AQA Quarterly Report ? December 2010 25
BONUS ISSUE
The Company announced at the Annual General
Meeting that there would be a 1 for 10 bonus issue
to recognise the significant progress that the
Company had made in its coal, iron ore and
manganese projects over the previous 12 months
and with a view to encouraging greater liquidity in
the Company?s shares (which in turn should
improve the likelihood of the Company being
included in the S&P/ASX100 Index).
EXERCISE OF OPTIONS
During the course of December 5,000,000 options
were exercised in respect of 19,166,400 shares
and a total of $20m was received by the Company.
STAFF
During the Quarter Aquila and its joint ventures
increased staff significantly, including a number of
senior personnel, to meet the demands of the
Company?s expanding operations.
BELVEDERE DISPOSAL
The legal proceedings which were commenced by
a subsidiary of Vale and which have delayed
determination of a Fair Market Value for the sale of
the Company?s 24.5% interest in the Belvedere
Hard Coking Coal Project, progressed towards a
2011 trial date.
CASH RESERVES AND LIQUID INVESTMENTS
Cash reserves and liquid investments total
approximately $288.2 million at the end of the
Quarter.
The Company?s Isaac Plains loan facility was fully
repaid during the Quarter.
For further information please contact:
Mr Tony Poli
Executive Chairman
Telephone: (08) 9423 0111
Facsimile: (08) 9423 0133
Email: [email protected]
Visit us at: www.aquilaresources.com.au
COMPETENCY STATEMENTS
AQA Quarterly Report ? December 2010 26
Talwood Coking Coal Project
The information in this announcement that relates to the Resource Statement has been based on information compiled by Mr Rod
Doyle. He is a full-time employee of Aquila Resources Limited and holds shares in the Company. He is a qualified Geologist (BSc
Geology UOW 1978 and MAppSc UNSW 1988) with some 30 years? experience in coal geology, coal mining and resource evaluation.
He is a member of the Australasian Institute of Mining and Metallurgy and qualifies as a Competent Person under the JORC Code. Mr
Doyle consents to the inclusion of this information in this statement and related announcements as well as presentations, where the
information presented is in the form and context in which it appears.
West Pilbara Iron Ore Project
The information in this report that relates to exploration results is based on information compiled by Mr Stuart Tuckey, who is a Member
of The Australasian Institute of Mining and Metallurgy and is a full-time employee of API Management Pty Ltd. Mr Tuckey has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves?. Mr Stuart Tuckey consents to the inclusion in the report of the matters based on the
information in the form and context in which it appears.
The information in this report that relates to the Catho Well Catho Well North, Cardo Bore East, Cardo Bore North, Cochrane, Jewel,
Kens Bore, Kens Bore East, Trinity Bore and Upper Cane Mineral Resources was prepared under the supervision of Mr Stuart Tuckey
and Mr Richard Gaze who are members of the Australasian Institute of Mining and Metallurgy. Mr Tuckey is full-time employee of the
API Management Pty Ltd. Mr Gaze is a full-time employee of Golder Associates Pty Ltd. Mr Tuckey and Mr Gaze have sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ?Australasian Code of Reporting of Exploration
Results, Mineral Resources and Ore Reserves?. Messrs Tuckey and Gaze consent to the inclusion in the report of the matters based on
the information in the form and context which it appears.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Steve Craig, Managing Director of
ORElogy (Mining Consultants). Mr Craig is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking,
to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves?. Mr Craig consents to the inclusion in the report of the matters based on the information in the form and
context in which it appears.
Thabazimbi Iron Ore Project
The estimates of iron ore Resources for the Meletse Iron Ore Deposit presented in this report have been prepared in accordance with
the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (?the JORC Code?).
The estimates are based on information compiled by Mr Brent E Green who is a member of the Australian Institute of Geoscientists and
a full time employee of the Company. Mr Green has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code.
Mr Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report, insofar as it relates to Mineral Exploration activities, is based on information compiled by Mr Brent E
Green who is a member of the Australian Institute of Geoscientists, and who has more than five years experience in the field of activity
being reported on. Mr Green is a full-time employee of the Company. Mr Green has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the 2004 Edition of the ?Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr
Green consents to the inclusion in the report of the matters based on his information, in the form and context in which it appears.
Avontuur Manganese Project
The information in this report, insofar as it relates to Mineral Exploration activities, is based on information compiled by Mr Brent E
Green who is a member of the Australian Institute of Geoscientists, and who has more than five years experience in the field of activity
being reported on. Mr Green is a full-time employee of the Company. Mr Green has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the 2004 Edition of the ?Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr
Green consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 1
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.
Name of entity
AQUILA RESOURCES LIMITED
ABN Quarter ended (?current quarter?)
81 092 002 769 DECEMBER 2010
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A?000
Year to date
(6 months)
$A?000
1.1 Receipts from product sales and related
debtors
60,934 98,838
1.2 Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
(23,743)
(4,626)
(31,571)
(3,763)
(44,315)
(7,249)
(61,334)
(6,785)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received
3,373 8,790
1.5 Interest and other costs of finance paid (450) (645)
1.6 Income taxes paid - -
1.7 Other (Service charges) 109 344
Net Operating Cash Flows 263 (12,356)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
(2,987)
-
(4,181)
(2,987)
(4,042)
(4,874)
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
-
32
-
-
37
-
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (Security deposits lodged) (20,488) (23,140)
Net investing cash flows (27,624) (35,006)
1.13 Total operating and investing cash flows
(carried forward)
(27,361) (47,362)
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 2
1.13 Total operating and investing cash flows
(brought forward)
(27,361) (47,362)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options,
etc.
20,000 22,074
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings (5,215) (5,524)
1.18 Dividends paid - -
1.19 Other (provide details if material) - -
Net financing cash flows 14,785 16,550
Net increase (decrease) in cash held (12,576) (30,812)
1.20 Cash at beginning of quarter/year to date 263,045 281,174
1.21 Exchange rate adjustments to item 1.20 (226) (119)
1.22 Cash at end of quarter 250,243 250,243
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 223
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Management Fees, Directors? Fees
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 3
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A?000
Amount used
$A?000
3.1 Loan facilities -1 -
3.2 Credit standby arrangements - -
1 ? The Company?s Isaac Plains cash advance and financial guarantee facility was repaid during the quarter.
Estimated cash outflows for next quarter
$A?000
4.1 Exploration and evaluation 35,000
4.2 Development 12,000
4.3 Production 25,000
4.4 Administration 3,000
Total 75,0001
1 ? Represents specified cash outflows only. Does not include cash inflows such as sales receipts and interest income.
Reconciliation of cash
Reconciliation of cash at the end of the quarter
(as shown in the consolidated statement of cash
flows) to the related items in the accounts is as
follows.
Current quarter
$A?000
Previous quarter
$A?000
5.1 Cash on hand and at bank 55,235 48,037
5.2 Deposits at call 195,008 215,008
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 250,243 263,045
Changes in interests in mining tenements
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning
of quarter
Interest
at end
of
quarter
6.1 Interests in mining
tenements
relinquished, reduced
or lapsed
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 4
6.2 Interests in mining
tenements acquired or
increased
E47/2205
Iron-ore ? Western Australia
Granted 50% 50%
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and
dates.
Total number Number
quoted
Issue price per
security (see
note 3) (cents)
Amount paid up per
security (see note
3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases through
issues
(b) Decreases through
returns of capital, buybacks,
redemptions
7.3 +Ordinary securities 374,314,049 374,314,049
7.4 Changes during
quarter
(a) Increases through
issues
(b) Decreases
through returns of
capital, buy-backs
19,166,400
32,285,463
19,166,400
32,285,463
$4.00 - See Note 7
$Nil ? See Note 8
$4.00 - See Note 7
$Nil ? See Note 8
7.5 +Convertible debt
securities
(description)
7.6 Changes during
quarter
(a) Increases through
issues
(b) Decreases
through securities
matured, converted
7.7 Options (description
and conversion factor)
4,590,000 -
Exercise price
See note 6.
Expiry date
See note 6.
7.8 Issued during quarter
7.9 Exercised during
quarter 5,000,000 - $4.00 31 December 2010
7.10 Expired during quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
+ S
C
1
2
Si
Pr
N
1
2
3
4
5
6
7
8
See chapter 19
Complia
This
with
stan
This
gn here:
rint name:
Notes
The q
have
want
attac
The ?
minin
invol
its pe
intere
Issue
items
The d
AASB
Acco
Stan
stand
Secu
5,000
ordin
32,28
share
9 for defined te
ance sta
s statement
accounting
ndards acce
s statement
______
Directo
Tony P
quarterly repo
e been finance
ting to disclos
ched to this re
Nature of int
ng tenements
ved in a joint
ercentage inte
est and cond
ed and quot
s 7.1 and 7.3
definitions in,
B 1026: State
ounting Stan
dards for fore
dard on that t
urities issued
Number Iss
2,940
1,650
0,000 options
nary shares a
85,463 share
e for every te
erms.
atement
has been p
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does give a
___________
or
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ed for the pas
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terest? (items
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ndards ASX w
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topic (if any) m
but not quoted
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0,000 Opt
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s were exercis
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es were issue
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as defined
ASX (see no
true and f
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_______
basis for inf
st quarter and
information is
6.1 and 6.2)
xercised or la
eement and th
ning tenemen
ent in the list
s The issue
securities.
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sh Flows appl
will accept, fo
If the standa
must be com
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ype
tions
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the entitlemen
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ote 4).
fair view of t
ate: 31 Janu
forming the m
d the effect o
s encouraged
includes opti
apsed during t
here are cond
nt, it should di
required for
price and am
1022: Accou
y to this repo
or example, th
ards used do
plied with.
ecember 2010
Expiry D
22 June
1 July
he quarter tha
nt of the hold
to a bonus i
ration enti
nting policie
porations Ac
the matters
ary 2011
market how the
n its cash pos
to do so, in a
ons in respec
the reporting
ditions preced
sclose the ch
items 6.1 and
ount paid up
unting for Extr
ort.
he use of Inte
not address a
0.
Date E
2013
2014
at converted to
er to bonus is
ssue, at no
App
ity quarterl
Append
es which com
ct or other
s disclosed.
e entity?s acti
sition. An en
note or note
ct of interests
period. If the
dent which wi
hange of perc
d 6.2.
is not require
ractive Indust
ernational Acc
topic, the A
Exercise Pric
$7.6
$11.4
o 19,166,400
ssues.
consideration
endix 5B
ly report
ix 5B Page 5
mply
ivities
tity
es
s in
e entity is
ill change
centage
ed in
tries and
counting
ustralian
e
5
0
0
n, for one