iron ore companies, page-6

My suggestion POL. Very good ouline of projects below:

Projects
Pilbara Iron Ore Projects

Poondano Project (Polaris 100%)

The Poondano project, 30km southeast of Port Hedland, comprises a series of channel iron deposits (“CID”) that extend discontinuously over more than 20km. In the east and central sectors of the palaeochannel, the CID remnants are mesas elevated up to 30m above the plain level (“Poondano East” and “Poondano Central”). In the west the CID has expression as a low hill 10-15m above surrounding sand plain (“Poondano West”). This deposit crops out relatively poorly over a 2km strike length. Further to the west the projection of the palaeochannel is covered by sand and iron-rich gravels; but drilling indicates significant CID under the cover.


Polaris is currently conducting a pre-feasibility study (“PFS”) assessing the economics of mining and exporting 1.25-2.50Mtpa of iron ore through the proposed Port Hedland Port Authority (“PHPA”) public access port facilities when available. Based on previous sampling of Poondano Central mesas and drilling by Polaris on Poondano West and its extension under the sand plain in 2007, the target potential of the project has been assessed as 10-15Mt. Public access port availability is anticipated around the end of 2009.


Key issues addressed so far in the PFS include:


- Aboriginal Heritage clearance for infill drilling on Poondano West, and additional drilling programs at Poondano Central and Poondano East;


- Environmental permitting:

Preliminary botanical survey by Astron Environmental Services indicated that a full botanical survey ahead of the resource definition drilling program is unlikely to be required by the DoIR;
Proposal of Works for 10,000m infill resource definition RC drilling program at Poondano West lodged with the DoIR for approval;
Contract awarded to Enesar Consulting Ltd for management of the environmental permitting process. Enesar will co-ordinate the activities of all the sub-consultants and contractors to produce the Environmental and Social Impact Assessment (ESIA) document for EPA assessment, and the Mining Proposal for assessment by the DoIR;

- Water supply - proposal received and a contract awarded to K Morgan and Associates for hydrological investigations; initial site visits identified water drilling targets;


- Metallurgical and engineering - proposal received from Promet Engineers for the design and management of a metallurgical test work program, process design, and engineering and infrastructure requirements. This is a staged proposal, with the key milestone being the outcome of a metallurgical test work program after the next round of drilling;


- Port availability - progress of the PHPA Panamax berth development monitored, most likely commissioning date end 2009, which is in line with the expected Poondano full feasibility study schedule.


Results from Polaris 2007 rock chip face sampling of mesas comprising the Poondano Central deposit validate the expectations of commercial iron ore grades and thicknesses. The results indicate that the pisolitic CID in the mesas is up to 9m thick with average surface grades ranging from 55.8% - 58.0% Fe and individual one metre samples up to 60.9% Fe. Silica ranges between 4.49% and 7.41% SiO2, alumina between 1.26% and 2.54% Al2O3, phosphorus between 0.035% and 0.087% P and loss on ignition (LOI) between 9.7% and 11.2%.


Drilling is required to confirm that these surface grades are representative of the mesas; however, the results are comparable with the grades of Robe River Iron Ore fines and lump products, which have a high level of commercial acceptance in iron ore markets.


Goldsworthy JV Project (Polaris earning 70% Perseverance Corporation Limited 30%)

The Goldsworthy JV project area consists of a 120km2 exploration licence located approximately 100km east of Port Hedland. Under the terms of a joint venture with tenement holder Leviathan Resources Limited (wholly owned subsidiary of Perseverance Corporation Limited), Polaris can earn a minimum 70% interest in the project by spending $2.5 million over a four year period. Polaris’ exploration objective has been discovery of iron ore deposits similar to the 65Mt mined out Mt Goldsworthy deposit which is located within an adjacent BHP Billiton mining lease.


A total of 2,168m of reverse circulation drilling was completed by Polaris in 2007, with 43 holes drilled to depths ranging from 6m to 114m.


The drilling tested concealed gravity anomalies and potential sub crop CID. None of these holes encountered hematitic iron ore of the Mt Goldsworthy type. However, one of the holes established the presence of CID, making an intersection of 3m at 47%Fe. Previous exploration data and Polaris gravity results suggest the CID extends over several kilometres and warrants further investigation.


Anomalous gold was also encountered over a drill traverse width of approximately 700m in a regional fault zone. Two holes returned anomalous end-of-hole gold results up to 0.33ppm Au. Holes with anomalous gold intersected highly carbonated mafic and ultramafic rock types indicating an extensive hydrothermal alteration system. Follow-up drilling of this concealed fault zone for gold deposits is warranted.


De Grey Project (Polaris 100%)

The De Grey project consists of an exploration licence contiguous with, and extending northeast of the Poondano exploration licence. The area is extensively soil covered and has potential for buried CID palaeochannels. The Company completed a gravity survey over a part of the area where magnetics indicate concealed iron formations of the type being explored by Atlas Iron with some success in adjacent tenements. Gravity anomalies were detected and these will be followed up with drilling in the current year.


Ashburton Project (Polaris 100%)

The project consists of four granted exploration licences that cover 532km2 located 10-40km south of Rio Tinto’s Paraburdoo iron ore mine in the southern Pilbara region. The area is considered prospective for transported iron ore deposits such as buried Robe pisolitic CID or surficial iron-rich gravels in palaeodrainages from the ranges hosting the Paraburdoo iron deposits.


Consulting engineers Project Development and Management Services Pty Ltd (“Prodemas”) were engaged in January 2007 to conduct a scoping study of the project, based on available data, and to recommend future work programs. The Prodemas report on the study concluded favourably on the assumption there are large volumes of transported iron ore deposits present within the Company’s exploration licences. Among the key strengths of the project were its location close to existing plant and infrastructure, its large scale target potential and the low phosphorus content of the +1.00mm beneficiated material indicated by the test work of the previous tenement holder. Prodemas recommended further geological and metallurgical investigations.


Other Pilbara Projects (Polaris 100%)

The Company acquired several other projects that will warrant exploration when the tenements are granted.


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Yilgarn Iron Ore Project

The name “Yilgarn Iron Ore Project” describes the ongoing exploration and pre-development studies on the Company’s iron ore projects in the South Central Iron Province. It includes iron ore deposits established by previous explorers and Polaris in the Helena and Aurora Ranges and Yendilberin Hills approximately 60km north of Koolyanobbing. With large scale direct shipping grade mineralisation (60-65Mt) established in the 1970s by BHP, and additional exploration target potential such that there is an expectation of a 200Mt resource base, the Yilgarn Project is capable of being developed to export 5-10Mt of iron ore annually for up to 20 years.


Locally, projects making up the Yilgarn Iron Ore Project are named Bungalbin Iron Ore project, Bungalbin-Aurora project, Evanston project, Windarling East project and Johnston Range project.


Bungalbin Iron Ore Project (Polaris 100%)

The Bungalbin Iron Ore Project (“BIOP”) is situated near the Mt Jackson iron ore mining operations of Portman Limited, about 50km north of Koolyanobbing.


The mining tenements comprising the BIOP contain several known iron ore deposits; namely:


- the J4 deposit - explored by WMC between 1961 and 1965. WMC estimated significant resources (pre-JORC) of both low and high grade iron mineralisation, with variable sulphur and phosphorus;


- the J5 (or Bungalbin Western), Bungalbin Central and Bungalbin Eastern deposits - explored by BHP between 1960 and 1972, while the company was mining iron-ore at Koolyanobbing. BHP carried out extensive RC drilling to test the three deposits.


Various ‘resource estimates’ were calculated for these deposits and these estimates were collated and summarised by an independent geologist in 1999. A summary of the ‘resource estimates’ follows:




(Source: Independent Geologist’s Report and Valuation Prepared by P W Askins of Outside Insight, July 2006 - Note these ‘resource estimates’ were prepared before the implementation of the current JORC Code and do not meet JORC compliance and therefore should only be regarded as estimates of size and grade of mineralisation.)


From 4 July 2000 until 3 July 2007 Portman Limited had rights to explore for and mine iron ore on BIOP tenements under a document titled “Heads of Agreement Bungalbin Iron Ore Project” originally made between Portman and Heron in 1999 and assigned to Polaris on 29 September 2006 (“HOA”).


Under the HOA, if Portman had delineated iron ore deposits and commenced mining on BIOP tenements, it would have been required to pay a royalty to Polaris at the rate of 2% of the FOB value it received for all iron ore transported from the tenements and sold. Portman failed to meet the requirement of the HOA to commence mining operations, having been allowed five years from 4 July 2000, and subsequently an extension for an additional two years to 3 July 2007 to do so.


As announced by Polaris on 10 July 2007, Polaris Directors resolved that based on detailed legal opinions the rights of Portman to explore for and mine iron ore on BIOP mining tenements ceased on 3 July 2007. Portman subsequently announced that it does not agree that its rights have ceased and the matter is currently unresolved pending commercial discussions and possible legal action.


Bungalbin-Aurora Project (Polaris 100%)

The Bungalbin-Aurora project includes tenements adjoining the BIOP tenements, together with tenements covering banded iron formations in the Aurora Range and Yendilberin Hills to the east.


As reported in May 2007 significant new deposits of hematitic and goethitic iron ore were discovered by Polaris at sites referred the as Carina, Chamaeleon and Vela. Collectively these deposits were assessed on the basis of surface sampling as having a target potential of 40-60Mt of iron ore. Grab samples from the deposits indicated the likelihood of significant tonnages with iron above 60% and relatively low phosphorus.


Other noteworthy Polaris exploration results during the year included:


- Gravity surveys at Chamaeleon, locating gravity highs consistent with possible iron ore mineralisation in soil covered areas south and southwest of the Chameleon iron ore outcrops. After Aboriginal heritage and botanical clearance, these will be included in proposed drill testing programs;


- Gravity surveys were also conducted around the Bungalbin Syncline closure areas and near iron ore deposits within adjacent BIOP tenements, defining several new drill targets;


- Combining the results of the gravity survey with aeromagnetic images suggests that where BIF is inferred to be present beneath cover in these areas, there is a reasonable probability that additional bedrock and detrital iron mineralisation will be found;


- Aboriginal Heritage surveys have been completed in five areas of interest, with no significant sites identified;


- Botanists and environmental scientists Mattiske Consulting commenced botanical surveys in compliance with environmental approval processes, and made more important by a proposal by the Environmental Protection Authority (“EPA”) to extend and upgrade the Mount Manning Nature Reserve to A Class.



EPA Proposal to Extend the Mt Manning Nature Reserve

The EPA advises State government with respect to protection of threatened species and biodiversity conservation. On 14 May 2007 the EPA released Bulletin 1256 advising on recommended measures to protect areas deemed to be of high conservation value in proposed extensions to the Mount Manning Nature Reserve, including that:


- an A Class Nature Reserve to include the highest priority conservation areas be established;


- the precautionary principle be applied in relation to proposals to offset loss of highly habitat specific Banded Iron Formation (“BIF”) endemic species through translocation to other sites.


The proposed extension, if adopted by government, would encompass the Bungalbin group of deposits and the Vela discovery. Polaris has therefore established a task force to respond to the EPA’s proposal, and to meet with government to ensure that the Company’s interests are properly presented and that government fully understands the exceptional economic potential of the region.


In common with its peers in the mining industry, Polaris recognises the importance of biodiversity conservation and adheres strictly to environmental regulations as well as Aboriginal heritage protection regulations. The Company is well aware of environmental management guidelines of the Department of Industry and Resources (“DoIR”) and Department of the Environment and Conservation (“DEC”) as regards operating in environmentally sensitive areas.


Importantly the recent Carina and Chamaeleon iron ore discoveries made by Polaris are outside the priority area recommended by the EPA to become an A Class Nature Reserve, and therefore the Company expects to be able to continue its exploration of them in accordance with its normal practice of environmental compliance.


Johnston Range JV Project (Polaris earning 70%, Golden State Resources Ltd 30%)

Mapping and surface geochemical sampling during the year identified poorly outcropping hematite-goethite iron mineralisation with high grade iron assay results. The highest rock chip result was 65.2% Fe, 2.87% SiO2, 1.24% Al2O3 and 0.065% P.


Reconnaissance gravity results combined with the mapping and sampling information identified seven, mostly concealed, iron ore targets.


All statutory approvals were obtained for reconnaissance drilling planned for late 2007.


Windarling East Project (Polaris 100%)

The Windarling East Project is situated east of the Windarling iron ore mine of Portman Ltd. Outcrop is poor; but a reconnaissance gravity survey found anomalies associated with discrete aeromagnetic highs which could be Windarling-type iron mineralisation. Windarling is a 60 Mt deposit grading 63.6% Fe.


Evanston JV Project (Polaris earning 70%, Perseverance Corporation Limited 30%)

Gravity surveying and reconnaissance geological mapping over the Die Hardy Ranges identified nine iron ore targets. Mapping found a number of goethite and detrital iron outcrops, with the most extensive being a 300-400 metre long outcrop of vitreous goethite which is up to 15m wide. Rock chip sampling of the iron ore targets yielded up to 64.6% Fe, 2.01% SiO2, 0.60% Al2O3 and 0.035% P. Much of the Diehardy Ranges BIF is unusually enriched in iron, with rock chip assays consistently in the range 40-45% Fe. The area has potential for large scale magnetite deposits.


Drilling of the targets in the Evanston project is likely to be delayed due to DEC concerns about the possibility of rare flora being present.


Perrinvale Project (Polaris 100%)

The Perrinvale Project is situated 100km west-northwest of Menzies in the Eastern Goldfields. Initial geological reconnaissance for iron ore identified an 800m by 100m area of outcropping hematite/goethite mineralisation from which samples averaged 60.36% Fe, 3.48% SiO2, 1.89% Al2O3, 0.085% P and 7.32% LOI. The trend of the mineralisation has been traced in a northerly direction for approximately 7km, and numerous rock chip samples gave promising results as indicated in the following table.




Aboriginal Heritage surveys have been completed in three survey areas. Although a number of rock holes and artifice sites were identified, these should not restrict the future exploration proposed by Polaris.


In view of the project being some 100km northeast of the Company’s main area of interest north of Koolyanobbing, and accordingly having less favourable infrastructure, Polaris is currently reviewing its options for Perrinvale.


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Onslow Solar Salt Project

Onslow Project (Polaris 100% reducing to 50%, Prodemas earning 50%)

The Onslow Project comprises three granted exploration licences south-west and north of Onslow on the north-west coast of Western Australia. The original intent of the licences was to cover a number of deposits of iron-sands that have been formed by coastal processes on iron-rich sediments transported from the Pilbara region by the Ashburton River.


On 29 May 2007 Polaris announced details of an agreement which could lead to the development of a new solar salt project in the Onslow tenements, which are contiguous with and/or in close proximity to the existing solar salt operations of Onslow Salt. The agreement is with consulting engineers Prodemas who will undertake an A$50,000 scoping study at no cost to Polaris.


Under the terms of the agreement, Prodemas can earn a 10% stake in the salt project by completing the scoping study. Prodemas will then also have the right to introduce an equity partner to meet the first A$10 million of the project's development costs, taking Prodemas and its partner’s interest in the project up to 50%. Polaris will hold 50% interest free carried for the first A$10 million of expenditure.


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Gold and Nickel Projects

Southern Cross Goldfields Limited Spin-off
A new company was incorporated to acquire Polaris’ highly prospective gold, nickel and other base metals projects in the greenstone belts north and south of Southern Cross. The new company has been named “Southern Cross Goldfields Limited” (“Southern Cross”). With an independent Board of Directors and its own dedicated exploration team, Southern Cross is now in a position to settle arrangements with Polaris for the vend of relevant Polaris tenements and/or non iron ore mineral rights for an issue of shares and options to Polaris. Southern Cross is also the nominee of Polaris to conclude the purchase of tenements in the Marda area from International Goldfields Ltd.


For the purpose of a prospectus and IPO, the Independent Geologist, Accountant and Solicitor have been appointed and a timetable and budget for listing prepared.


Southern Cross will have a large landholding in the Marda-Diemals and Southern Cross greenstone belts, with significant gold resources and known nickel sulphide mineralization.


Exploration potential within these belts is considered to be high as previous exploration has been limited, and has focused on outcropping and subcropping iron formations. Recent intercepts of gold associated with porphyry intruded into the Evanston Shear Zone in the Marda area have returned up to 20m grading 3.2g/t Au, suggesting significant potential exists for mineralization away from the areas concentrated on by previous explorers.


Previous exploration has confirmed the presence of sulphide and oxide nickel mineralization in the Trough Well area at Bullfinch North, with results including 15m @ 2.74% Ni and 6m @ 2.1% Ni. The entire Bullfinch North and western Marda-Diemals greenstone belts are considered prospective for nickel mineralization – a strike of over 150km. Hence Southern Cross has access to what it considers to be a major new nickel province.


It is anticipated that Southern Cross will raise between $7M and $10M from its IPO and will aggressively explore its existing tenements over the next 2-3 years, with in-ground expenditure estimated at $2M to $3M per annum.

cheers.