portman dispute settled

 

9 May 2008
ASX RELEASE
Polaris – Portman Dispute Settled
Yilgarn Iron Ore Project
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Polaris and Portman have executed a Deed of Settlement in respect of the Bungalbin tenements.
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Polaris now has confirmed tenure over Bungalbin East, J4 and J5 deposits – total resource potential 80Mt at 58% Fe.
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Polaris moves to 100% ownership of the Mayfield DSO and magnetite deposit.
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Polaris gains important haul road access to nearby rail infrastructure.
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Mutually beneficial tenement rationalisation completed in the region.
The Directors of Polaris Metals NL (Polaris) are pleased to announce the final resolution of the Bungalbin tenement dispute with Portman Iron Ore Limited (Portman), which provides Polaris with unfettered ownership of three important iron ore deposits.
The settlement relates to ownership of tenements in Polaris’ Yilgarn Iron Ore Project (YIOP) area, 60km north of Koolyanobbing in Western Australia.
Settlement
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Polaris has secured unencumbered 100% ownership of the iron ore rights over the Bungalbin tenements that contain the Bungalbin East, J4 and J5 deposits.
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Polaris has been assigned Portman’s 60% ownership of the iron ore rights of the Mayfield tenement, giving Polaris 100% ownership of tenements with significant resource potential for both direct shipping and magnetite ores.
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Polaris has assigned its direct shipping iron ore interests to Portman in a number of tenements groups - (Perrinvale area and Mt Jackson area), while retaining magnetite iron ore rights, and assigned the Gibbings Island tenement unconditionally.
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Polaris has been granted access to Portman’s haul road from Windarling to Koolyanobbing in limited circumstances under specific commercial terms and conditions which ensure that Portman continues to operate without interference.
The agreement delivers ownership of several iron ore targets:
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Bungalbin East, resource potential 60Mt with 58% Fe.
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J4, resource potential 10Mt at 58% Fe.
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J5, resource potential 10Mt at 59% Fe.
As part of the YIOP resource evaluation, efforts will now continue to further drill test and establish Mineral Resources. Bungalbin East and J5 are subject to the proposed expansion of the Mt Manning Nature Reserve, with Polaris given three years by the State Government to quantify respective economic and environmental values.
Polaris Managing Director Jonathan Lea said, “Having Polaris and Portman sit down and negotiate win-win commercial outcomes that have simplified previously complex ownership arrangements is a great result for the respective shareholders. Polaris considers this is a significant milestone in progressing the YIOP and for the future mining development of the region. All stakeholders in the region should be encouraged that the two companies have been able to reach such sensible solutions.”
“Polaris’ access to the Portman Windarling-Koolyanobbing haul road subject to capacity availability means Polaris has a direct road haulage route to the rail infrastructure for some of our planned iron ore operations. ”
For and on behalf of
POLARIS METALS NL
Jonathan Lea
Managing Director