iron ore project update

This sounds more exciting then the Mongolia Projects.

Shoemaker Project
(Iron ore & manganese exploration - GMM 50% & earning up to 80% from Galaxy Resources
Limited)
The technical overview by Coffey Mining in February 2010 concluded that the
Shoemaker project had good potential for iron-ore mineralisation in both the bedded
and taconite styles in BIF1 and some potential for near surface DSO2 hematite
mineralisation within the Frere Formation. The Lockeridge Prospect discovery by Zinc
Co (ASX:ZNC) next to the Shoemaker project, as well as work on the Stanley
Project by AusQuest Ltd (ASX:AQD), also show the presence of stratiform bedded
manganese mineralisation in the Earaheedy Basin
The Company?s field program in May?July included outcrop mapping and sampling
over the Frere Formation and further confirmed the presence of the extensive highgrade
iron ore mineralisation at the surface within the project area. 33 rock chip
samples collected from hematite rich surface outcrops yielded high-grades from 50%
to 65% Fe (Figure 3 - refer ASX announcements dated 1 June and 26 July 2010).
This program also identified some previously unknown spot occurrences and 3 linear
manganese mineralisation zones totalling ~1.9km along strike and up to 30m wide.
19 rock chip samples assayed from 21% to 48% Mn (refer ASX announcements
dated 1 June and 26 July 2010).
Figure 3: High-grade iron ore & manganese mineralisation at Shoemaker project area:
1 Banded Iron Formation
2 Direct Shipping Ore
4
The 1st stage RC drilling program has been planned to include 30 holes totalling about
2,500 line metres to explore the following:
? vertical extent of the surface high-grade iron ore mineralisation;
? identified magnetic and gravity anomalies - targeting possible bedded and taconite
style iron ore mineralisation in the Frere Formation;
? extent of the newly identified bedded manganese mineralisation.
After some delays due to the factors beyond the Company?s control, a statutory heritage
survey of the drilling program areas was carried out in November and the survey report
was received by the Company in early December. This cleared the planned drilling sites
and access routes. The Company lodged its Programme of Work (POW) application for the
1st stage drilling on 10th December and on 24th January 2011 received a letter from the
WA Department of Mines and Petroleum (DMP) that informed that the DMP intended to
approve the POW subject to some additional conditions that included lodging an
Unconditional Performance Bond of $10,000 as well as the restriction for the exploration
activities to be permitted only during dry conditions. The latter requirement could mean
further delay as, subject to finally receiving the DMP?s approval of the POW, the Company
will start drilling only when there are dry conditions at the project area.
Because of the delays with the heritage survey, in December the Company applied for the
extension of exploration licences E69/1869, E69/1870 and E69/1871 beyond their original
expiry date, and is pleased to advise that the DMP has informed the Company that this
application has been approved.
Dr Boris Matveev
Managing Director