new iron ore resource discovered close to fdl

HIGHLIGHTS
In a media release dated 7 February 2008, Rio Tinto announced the discovery of a new inferred iron ore resource • of 875 million tonnes at Caliwingina North, less than 10 km to the north of Flinders Diamonds Limited’s (Flinders) E47/882 Hamersley project.
Flinders Diamonds Hamersley Iron project 882 is located between two major new CID iron ore discoveries (Figure 1) • and is regarded by Flinders as highly prospective.
Australian Securities Exchange Announcement
NEW IRON ORE RESOURCE DISCOVERED CLOSE TO FLINDERS DIAMONDS HAMERSLEY PROJECT
20 February 2008
The Manager
Companies Announcements Office
Australian Securities Exchange
20 Bridge Street SYDNEY NSW 2000
The Caliwingina Iron ore Discovery
In a media release dated 7 February 2008, Rio Tinto announced that it had strengthened its leading position in the Pilbara with a 3.0 billion tonne addition to its resource base. Of relevance to Flinders is the location of Rio’s new Caliwingina North CID inferred resource of 875 million tonnes which commences only about eight kilometres north of the boundary of Flinders E47/882. Location is shown on
��HamersleyFigure 1, which also shows the location of FMG’s recent CID (Channel Iron Deposits) discoveries at Serenity and Solomon which together total 1.7 billion tonnes.
Flinders E47/882 project, which was announced on 22 November 2007 to contain an iron ore target of between 325 and 390 million tonnes, is clearly located between two major channel iron ore deposits and is therefore regarded by Flinders as highly prospective.
Figure 1 Location of iron ore resources near Flinders Diamonds Hamersley Project E47/882.
-22º00'117º30'118º118º30'E47/1523E47/1524E47/882HamersleyE47/1306Hamersley West325-390 Mt Iron Ore Exploration Target on E47/882 (FDL)325-Caliwingina NorthCaliwingina NorthProspectProspectE47/1352SerenitySerenityProspectProspectE47/1333E47/1372875 Mt Inferred Iron Ore Resource (RIO)875 220 Mt Inferred Iron Ore Resource on E47/1306 (included in 1014 Mt Resource) (FMG)1014 Mt Inferred Iron Ore Resource (FMG)E47/1011E47/1011E47/1011Bold CliffBold CliffBold CliffE47/1334Solomon EastSolomon EastProspectProspectE47/1398E47/1399702 Mt Inferred Iron Ore Resource (FMG)702 E47/1436E47/1016Mulga DownsWittenoomWittenoomWittenoomWittenoomWittenoomWittenoomWittenoomWittenoomWittenoom01020 kmFDL Tenements - iron ore & diamonds 100% FDL-PrentiFMG ProspectsFDL Tenements - FMG 100% iron ore, FDL iron ore royalty, FDL 100% diamondsFMG Tenements - FMG 100% iron ore, FDL 100% diamonds, no royaltiesRIO Calinwingina North ResourceFDL = Flinder Diamonds Limited FMG = Fortescue Metals Group Limited RIO = Rio Tinto LimitedRIO Tenement AreaFMG Proposed "Kennedy Railway Spur"Rio Tinto Railway
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Flinders Iron Ore Drilling Plans
Flinders is actively preparing for its drilling programme in 2008 within E47/882, to test its resource targets in light of the exciting nearby recent CID finds by Rio Tinto and FMG. There is strong technical evidence to support the continuation of these CID deposits into FDL’s 100% owned E47/882. Flinders has been discussing its drilling requirements with several contractors and it is anticipated a four to six month contract will be let for the job.
Quotations for iron ore assays from several laboratories are being pursued with an aim of achieving the fastest assay turnaround time possible.
Flinders will ensure that all drilling methods and elements assayed are in line with industry requirements for resource estimation and export specifications.
Heritage and Work Program Clearances
Flinders has compiled Heritage survey data which is ready to be submitted for site clearances over the next two to three months. Data to submit to DOIR for work program approvals has also been prepared.
Project Logistics
Progress has been made in engaging a Flinders Diamonds iron ore geological team for the 2008 field season.
The procurement of supplies and equipment for construction of the field camp and access roads has also commenced.
The Flinders Hamersley iron project has potential for rapid advancement due to the close proximity of rail infrastructure to its resource targets. A rail system has been established by Rio Tinto to export iron ore through the port of Dampier. FMG are currently constructing a rail system to the Chichester Ranges to export their new iron deposits through Port Hedland. This rail line will have a spur line called the “Kennedy Spur” which is currently being designed and is in the approvals process stage (Figure 1).
Rising iron ore prices increase the chances of tapping the iron ore wealth of Flinders Hamersley iron project for shareholders.
Flinders Diamonds Limited
ABN 46 091 118 044
www.flindersdiamonds.com
62 Beulah Road
Norwood
South Australia 5067
PO Box 3126
Norwood
South Australia 5067
telephone 61 8 8132 7950
facsimile 61 8 8132 7999
email [email protected]
For further information please contact:
Kevin Wills on 08 8132 7950
or 0419 850 997
Duncan Gordon - Investor relations on 08 8232 8800 or 0404 006 444
Email: [email protected]
The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Dr K Wills who is a member of the Australasian Institute of Mining and Metallurgy. He has more than five years of relevant experience in the style of mineralisation and types of deposit under consideration and consent to inclusion of the information in this report in the form and context in which it appears. He qualifies as Competent Persons as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Dr Kevin Wills
Managing Director
20 February 2008