iron ore

24th October 2007
ASX Release
MT CAUDAN RETURNS HIGH GRADE
IRON SAMPLES UP TO 64% Fe
. Field work commences at Mt Caudan iron Project
.Initial work outlines continuous mineralised zone over 900m
. Rock chip results up to 64% Fe
. Drilling programme planned for November
Cazaly Resources Ltd (ASX:CAZ) entered into an iron ore farm-in agreement with Gondwana
Resources Ltd (ASX:GDA), covering the Parker Range Project. Details of the farm-in agreement
were announced by GDA on 3rd July 2007. Cazaly can earn 80% of the iron ore rights through
the expenditure of $1million over three years. The Parker Range Project lies approximately 15
kilometers south-east of the Marvel Loch town site and approximately 60 kilometres by road
south of the Perth–Kalgoorlie rail. Potential exists for the delineation of a substantial resource of
iron ore.
Parker Range is a prominent north trending ridge extending for some 13km. Cazaly mobilized a
field crew and completed exploration mapping and limited sampling with the focus on the Mt
Caudan banded iron formation (BIF). A total of 21 rockchip samples were taken along the BIF
over a strike extent of 1.5km with continuous mineralisation noted for 900m. Eight (8) samples
returned assay results greater than 60% Fe (Table 1).
As reported by GDA in July a review of historic data shows that the Mt Caudan area is host to
several iron deposits with investigations made between 1965 and 1969 suggesting exploration
targets ranging between 5 to 30M tonnes. The targets are conceptual in nature and should not
be construed as an estimate of Mineral Resources or Ore Reserves. The tonnage range for the
exploration prospect at Mt Caudan is based on estimations completed by previous operators
between 1965 and 1969 and reported to the Department of Industry and Resources.
Cazaly will mobilize a drill rig to test Mt Caudan once the required regulatory consents have
been received.