HAMERSLEY TENEMENT E47/882 Figure 1 (FMS earning 100%)•...

HAMERSLEY TENEMENT E47/882 Figure 1 (FMS earning 100%)
• Encouraging assays returned from exploration drill holes in Area E
• New drill rig onsite performing well
• Site camp commissioned
HAMERSLEY TENEMENT E47/1560 Figure 1 (FMS 100%)
• Flinders Mines Limited (ASX: FMS) has received an independent review of the iron ore potential on its
Hamersley tenement E47/1560 (100% owned), recently purchased from Cazaly Resources.
• An exploration target of between
120 and 175 million tonnes of
iron ore averaging 45 to 60%
iron is outlined on E47/1560
• The combined exploration target
on tenements E47/882 & 1560
is estimated to be between 479
and 555 million tonnes of iron
ore averaging 45 to 60% iron

Encouraging Assays Returned
from Exploration Holes on
E47/882
Flinders Mines Limited (FMS) has
received encouraging assays from RC
drilling on the company’s Hamersley
E47/882 licence, in the Pilbara region of
Western Australia (Figure 2). The results
are shown in Table 1 and indicate good
widths of channel iron deposit (CID)
mineralisation in Area E and continuity
of Fortescue Metals Group’s Serenity
deposit into E47/882. All drill holes are
vertical and represent true widths

The grades of iron and concentrations
of deleterious factors (aluminium, silica,
phosphorus and loss on ignition) are
comparable with those in the Serenity
deposit. All of these intersections are
on the eastern most drill line adjacent
to the Serenity deposit. The thickness
of CID intersected is greater than
the average estimated for the entire
exploration target, as previously defined
by Dr Richard Russell.
The spacing between these drill holes
is 400m, with the three holes spanning
a total distance across the channel of
800m. Drill hole HRC4 is located to
the north of the interpreted extension
of the Serenity deposit into E47/882
and may indicate that the channel to
the northwest of HRC4 contains good
thicknesses of CID mineralisation.
Further exploration drilling continues
to intersect CID mineralisation. Five
additional drill holes have been
completed with all holes intersecting
CID except for a single drill hole. The
geology in these holes is consistent
with the interpretation by Dr Russell.
The CID intersections are up to a
further 1 kilometre to the west of the
intersections shown in Table 1. It is
noted that insufficient new information
is yet available to make meaningful
comparisons to previous target estimates.
FMS’s intention, once a regular flow of
assays is available, is to release a weekly
drilling update.
Additional Drill Rigs
The first of two new drill rigs has
commenced drilling onsite and has seen
an improvement in the rate and quality
of drilling (Figure 3). The drilling crew
quickly adapted to the difficult drilling
conditions and is increasing the rate of
drilling. The arrival of a second drill rig is
expected on 26 August.
Once both drill rigs are settled into
routine drilling the schedule will be
reviewed to determine if these rigs
will be capable of bringing the drilling
program back on track. The drilling will
initially focus on Areas C, D and E; the
largest exploration targets. A third drill
rig is available to be contracted if the
rate of drilling needs to be increased.
Consequently FMS still anticipates
returning JORC compliant inferred
resources for all five target areas prior to
the end of the 2008 calendar year.
The FMS owned geophysical down
hole logging truck is now on site and
operational (Figure 4). This will be
used to determine in situ physical
properties, such as density and
porosity, in all drill holes that can be
accessed. The collection of down hole
physical properties is important for
developing reliable resource estimates.
Table 1: Assays for exploration drill holes on E47/882, including a weighted average
for the main unit, and a comparison to the grades from the Serenity Deposit

Few geophysical logging trucks are
available to carry out such work due to
the amount of iron ore exploration work
currently being carried out in Western
Australia. FMS commissioned the
building of this logging truck to ensure
that physical properties are collected on
all FMS iron ore exploration targets.
Drill Site Preparation and
Archaeological Clearances
Drill site preparation is well ahead of the
drilling. Both Areas D and E have been
prepared for completion of drilling to an
inferred resource status. Areas B and C
have been marked out in preparation for
archaeological clearance, and Area A is
currently progressing.
Further archaeological clearances are
planned for mid September to allow
for the completion of all proposed
drilling in 2008, on E47/882. Preferred
earth moving contractors have now
been established and are scheduled
to complete all earthworks following
archaeological clearance.

Site Camp Commissioned
Campsite construction at the Hamersley
Project has been completed (Figure 5).
Onsite catering has commenced and
FMS staff and subcontractors have
successfully settled into site. A water
bore was completed in early August
and is supplying water to the camp
and being used for drilling purposes in
Area E.
Iron Ore Exploration Target on
E47/1560 (FMS 100%)
In June 2008 FMS completed an
agreement with Cazaly Iron Pty Ltd
to purchase E47/1560 for a total
consideration of $750,000 in cash
and $750,000 worth of Flinders
shares. The tenement is located 15
kilometres southwest of Flinders’ 100%
Figure 6 Location of potential CID areas within E47/1560 as tabulated on Table 2.
Figure 5 Aerial view of FMS’s Hamersley Project camp.
117º20'
-22º12'
117º24'
E47/1560
Area A
Area D
Area E
Area B Area C
Area F
Area G
Exploration licence
Potential Channel Iron Deposit (CID)
0 2 km
owned E47/882 in the Hamersley
Ranges, WA (Figure 1). The tenement
totals 44 sq km of ranges and valleys
with high potential for channel iron
mineralisation. Flinders Mines Limited
(FMS) commissioned an initial study
by independent iron ore consulting
geologist/geomorphologist Dr Richard
Russell on the iron ore exploration
potential of E47/1560.
Dr Russell has carried out fieldwork
for FMS on the Hamersley over the
last 3 years and is familiar with the
geology and geomorphology of the
area. Specifically he has carried out
assessments of the exploration target
potential of E47/882, detailed in earlier
announcements. Dr Russell’s work
utilised aerial photography and his local
geological knowledge to determine
the possible location of channel iron
deposits (CID) and detrital iron deposits
(DID).
The results of this work are shown
on Figure 6. Dr Russell has divided
the tenement into seven main areas
of potential mineralisation (A to G on

Figure 6), then from the surface area
and probable average thickness has
estimated a total tonnage of CID of
between 120 and 175 million tonnes.
The estimate based on each area
is presented in Table 2. Dr Russell
estimates that DID mineralisation in this
tenement is less than 1% of the total
possible iron mineralisation - a much
lower proportion than in E47/882.
The grade of the CID exploration target
is estimated to be between 45 and
60% iron. The range of values for the
tonnages is calculated on varying the
probable average thickness and specific
gravity, which in turn has been derived
from knowledge gained from exploration
on E47/882.
The combined exploration target
in E47/1560 and E47/882 is now
estimated to be between 479 and 555
million tonnes with an estimated grade
of 45 to 60% iron.
It is emphasised that, although based
on the best available local experience,
this exploration target in E47/882 and
1560 is conceptual in nature and there
has 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.
Planning for drilling on E47/1560
will commence once a thorough
assessment of Dr Russell’s report is
complete. A program of works will
be submitted as soon as possible to
the Western Australian Department
of Mines to provide sufficient time to
carry out Native Title clearance and
the earthworks. Providing all approvals
are obtained in a timely manner, some
reconnaissance drilling may commence
on E47/1560 prior to the end of 2008.
Dr Kevin Wills
Managing Director
25 August 2008