Ann: Mt Woods Scoping Study Demonstrates Developm, page-7

re: Ann: Mt Woods Scoping Study Demonstrates ... I have no problem with the costings of the project as they mostly based them on current Cairn Hill operations.

“IMX’s proven development and operational experience in the region at our successful Cairn Hill mine, has allowed the estimation of operating costs with a high degree of confidence. Together with the reduced risk and complexity of project development, the potential projected returns are strong at long-term forecast benchmark prices.”

Iron ore prices will always fluctuate and just when you think there is an over supply suddenly there isn't and prices go up. Having a high quality magnetite will also offer some price assistance.

The next step involves Azure promoting the project to overseas companies. If we pull of a JV partner which would have to be on very good terms considerding we can go it alone at 2.5mtpa and pay back mine costs in 4 years. But if we can production could be tripled.

It would have to be a pretty attractive investment given operations and infastructure at Cairn Hill 15km away!

It's impossible to forecast io prices too far into the future and economic conditions will change but it looks great in current conditions and coparitevly to other magnetite mines in Australia.