Ann: Change of Director's Interest Notice, page-15

Back in 2006

CAZALY Resources shares tumbled as much as 80 per cent yesterday as investors around the nation expressed outrage over the West Australian Government's decision to hand back the Shovelanna iron ore deposit to Rio Tinto.

By far the biggest complaint was that the WA Resources Minister, John Bowler, has refused to explain why it was in the "public interest" for Rio to regain control of Shovelanna.

Rio accidentally let the lease on the tenement lapse last year due to a late courier delivery and it was swiftly picked up by Cazaly.

Cazaly lined up funding from Investec and an offtake agreement from BHP Billiton and planned to develop Shovelanna within three years, giving the state government $17 million a year in royalties. Its shares had rocketed from 29c to $2.12 since September.

Rio had not drilled a hole on the deposit in 20 years and is unlikely to mine it for at least another 10 because it lies 100 kilometres from the company's nearest infrastructure.

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