Australiasian Res News Release 4th July 2006 Australiasian Resources Poised To Strike Aspiring iron ore miner Australasian Resources Ltd (ASX Code ARH) is poised to benefit from the recent landmark deal between Citic Pacific and Mineralogy. Last week the foreign investment review board gave the go ahead for the multi-billion dollar deal which is centred on part of the massive Balmoral deposit, located on the Pilbara coast, 80km southwest of Dampier. Managing Director of ARH Mr Darren Hedley, was very supportive of the decision. "This clearly benefits our company and supports the boards decision seven months ago to enter into due diligence and negotiations with Mineralogy for the adjacent ground to that purchased by Citic " he said. In december last year Australasian Res first announced their agreement with Mineralogy on part of the Southern Block at the Balmoral deposit which included a work program of drilling, resource modelling and testwork. The company announced a first stage resource of 619Mt in May 2006, three months after commencing drilling and is confident they will define one billion tonnes in the next couple of months. Mr Hedley stated "We are dealing with what is arguably the largest undeveloped magnetite project in the world, and has all the characteristics you would expect to find in a world class deposit." He is obviously referring to its size (with 4billion tonnes already in resource and the potential to host 60 - 100 billion tonnes), its location (being on the coast, next to world class gas reserves, close to the consumer markets and the regional centres of Dampier and Karratha) and its metallurgical properties with the ability to produce a high quality, low impurity product. Hedley is confident of closing the deal this month and is buoyed by the future prospects of the company and their association with Mineralogy. Any queries can be directed to Darren Hedley on +61 8 9322 2288
ARH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
