capping , page-8

moveonup,

Have a look at the announcement 27/1/11 (Page 4).

Report states:

"Whilst the Phosphorus levels are somewhat elevated, preliminary DTR (Davis Tube Recovery) testwork completed during the earlier drill program demostrates this is reduced to low levels during magnetic separation. Based on the magnetic susceptibility and iron grade a number of samples have been selected for further analysis by DTR to assess the extend to which the magnetite can be recovered from the BIF. Results of the DTR work are pending and once available will be finalised on the maiden JORC estimate for the project."

From the Gindalbie Metals Website:

"Magnetite
Magnetite ore has lower iron content and must be upgraded to make it suitable for steelmaking.

Magnetite ore is suitable for processing into iron ore pellets for use in modern steel production and currently accounts for approximately 50% of global iron ore production. The magnetic properties of magnetite enable it to be readily refined into an iron ore concentrate.
While magnetite is generally a lower-grade deposit, it is globally accepted as a viable and high-quality feedstock for the production of premium quality, low impurity steel.

The processing route for magnetite requires crushing, screening, grinding, magnetic separation, filtering and drying. The final product is a high iron grade magnetite concentrate (+65% Fe), with typically very low impurities.

Further processing involves the agglomeration and thermal treatment of the concentrate to produce pellets, which can be used directly in a blast furnace or direct reduction steel-making plant.

The additional processing cost for the production of magnetite concentrate can be offset by the premium price which it attracts from steel mills because of the high iron content compared to benchmark DSO hematite products."

Another method of removing high levels of Phosphorus and Silica is Flotation. From Surface Chemistry News dated August 2010:

"Improving the Iron Ore Quality by Flotation
The last years have been very successful for the Iron ore mining industry with increased volumes and market price. The major driving force is the rapid economical expansion in China. To meet this growth the mining industry invests in both new production capacity and in processes to improve the quality of the Iron ore concentrate (magnetite/hematite).

Low grade iron ores has to be processed to a certain level of iron grade to meet the requirements from the steel producers.

Magnetic separation is used in the concentrating process of magnetite. There is always a mineralogical limit which sets the possible maximum iron grade; this differs between ores from different deposits. In many cases magnetic separation is not enough to give the wanted quality of iron ore concentrate.

Silica and phosphorus are the two most important impurities to be reduced. Especially phosphorus has to be reduced to a very low level.

Flotation is a well known technique which gives the opportunity to get further purification. Silicates are removed with cationic surfactants and anionic surfactants are used for the removal of phosphorus minerals.

The silica and phosphorus minerals become hydrophobic by the adsorbed surfactants and when air is dispersed in the mineral slurry in the flotation cell, froth will be formed containing the hydrophobic tailing minerals. The froth is separated and the iron ore sink is concentrated.

Akzo Nobel has extensive experience of flotation of both silica and phosphorus from magnetite ores and offers flotation reagents for both applications.

Silica flotation reagents are collected under the family name LILAFLOT? and the reagents for phosphorus reduction belong to ATRAC? family.

Akzo Nobel has a specialised application group and a mineral flotation laboratory for development of reagents. Every ore and process is unique and tests are required to find the optimal flotation reagents. During the development work the parameters of importance are identified and the optimal reagent is developed with respect to that. Examples of important parameters are content of fine particles (slime), process water quality and process temperature.

Successful properties for flotation reagents are high efficiency and selectivity. The losses of iron oxide must be minimized in the flotation and the reagent has to be efficient in removal of impurities at low dosage. Akzo Nobel also gives assistance to get the approvals from authorities for handling and usage of flotation reagents at the mine site."

Looks to me like they already have the results or would not be as advanced in the JORC modelling as to put the report out by end February (which Gary has stated numerous times in BRR and other ASX announcements. This to me indicates that they already know the answers here and based on the SP's stability over recent weeks may not be an issue.