heck and we though we have company making Uranium assets.well...

heck and we though we have company making Uranium assets.

well we've got company making Iron Ore assets as well..

Warriedar Joint Venture Project
[Midwest, Western Australia]

The Warriedar Joint Venture with Gindalbie (earning 60% interest in the iron ore rights by the expenditure of $1,000,000 on exploration over 3 years) covers tenements in the central area of the Midwest iron ore province.

Recent regional mapping and surface sampling by Gindalbie identified a number of significant targets called the Lister, Gap and Shine Prospects. A fourth target at the Hippo Prospect identified high-grade iron with low-contaminants. The Shine Prospect consists of a single zone over 900 metres of strike with widths between 10 – 20 metres thicken to maximum of 40 metres. Lister and Gap consist of 2 – 3 zones of enrichment over 500 metres and 280 metres respectively. Widths are typically mapped as between 5 – 20 metres for zones; however widths cannot be accurately predicted due to the nature of outcrops.

Phase 1 drilling has been planned to determine the significance of these zones and work has commenced on preparation of a Plan of Work (POW) to submit to the regulators.

Detailed mapping of these zones are underway with drilling planned for the June/September 2007 quarters.

These four (4) new discoveries have the potential to host additional resources to further strengthen Gindalbie’s current hematite resource inventory in the Karara Hematite Project. Gindalbie is targeting commencement of hematite mining and exporting mid 2008 and Royal has an opportunity to be a participant in this operation.


Plateau Ironstone Project
[Midwest, Western Australia]

A follow up reverse circulation drilling program at the Plateau prospect in the Midwest Iron Ore Province of Western Australia comprised of 23 holes with the primary objective of assessing an area of about 1 km2 where the initial drilling recorded near surface hematite ironstone enrichment. The spacing of the holes of the first drill program was about 500 metres.

Royal is very encouraged by the results of the drilling and will continue to define and extend the ironstone mineralisation of the Plateau prospect.

The recent RC drilling comprised holes 100m – 300m apart to assess the lateral continuity of the ironstone/hematite mineralisation. The results of the drilling are very positive with 5 holes recording encouraging width and grades of mineralisation. The more significant assay results for these holes are provided in the Table below.

An area of 0.8 square kilometres to a depth of 5 metres of the Plateau project has the potential to contain approximately 12-14 million tonnes of pisolitic hematite/–goethite material. This is our first small target within the broader parameters of the Plateau prospect which covers about 12 km2.

Of significance are the low phosphorous levels potentially making the mineralisation highly suitable for blending with high phosphorous ores.


Tallering Project
[Midwest, Western Australia]

Royal’s 100% owned Tallering project is located approximately 60 kilometres to the north east of Mullewa in the Midwest region of WA.

In August 2006 Royal completed an airborne magnetic and radiometric survey with the results highlighting an area of geological complexity and therefore of considerable exploration interest. One of the areas of immediate interest was a large magnetic high in the western area of the tenement located about 4.0 kilometres east of Tallering Peak iron ore mine presently being operated by Mt Gibson Iron Limited. A field reconnaissance of the area and a RC drilling program in late October 2006 confirmed the presence of a wide “Banded Iron Formation” (BIF) unit comparable to and an extension of the Tallering Peak BIF. Four reconnaissance holes (TPRC001 – TPRC004) were completed with two holes intersecting the BIF unit. In the western area of the anomaly the BIF unit was magnetite rich in excess of 50 metres wide. With over 4 kilometres of strike there is potential to locate areas of hematite enrichment similar to that being mined at Tallering Peak.

The Tallering project is also highly prospective for gold and base metals and a once the current review of prior exploration data is completed field programs will be planned to assess areas with identified prospectively.

Pilbara Iron Ore Projects
[Pilbara, Western Australia]

Royal holds a 100% interest in eight tenements in the Pilbara region where the primary focus is iron ore resources. Three tenements are part of the Prairie Downs project located about 15 kilometres to the west of the world class Mount Whaleback iron ore mine at Newman. The five remaining projects are located to the north and west of Newman. (See Pilbara project location map).

A reconnaissance field survey was undertaken in late May 2007 to assess BIF occurrences at Prairie Downs, Railway and Marillana Bridge project areas.

In the northern and southern areas of the Prairie Downs project – exploration licences E52/1604, E52/1911 and E52/1912 – rock chips samples from the southern areas of E52/1604 returned significant Fe% assay values. A small number of rock chip samples and surface laterite samples were also collected at the Marillana Bridge project and again significant Fe% values were recorded. A summary of this data is provided in the following Table.