potentia; 500mt iron ore-mkt cap$4m

Further to the announcement of the acquisition of an option to acquire up to 100% of the Victory
Bore Iron Ore Project (Exploration License Application ELA 57/550), an Independent Expert's
opinion has been received and is summarized below. It addresses the considerable potential for
mining development of the contained magnetite/hematite mineralisation.
Summary
Victory Bore covers an area of approximately 160 km2 and is located in a region of Western
Australia which is proven to host iron ore deposits, base metal mineralisation and precious metal
deposits.
The potential for iron ore at the Victory Bore Prospect, interpreted from reconnaissance geological
mapping, geochemical analysis of rockchip samples and aeromagnetic survey data, has been
confirmed by drilling which returned a best value of 49 m grading 34.4% Fe2O3.
Lissiman (1981) reported that an estimated 100,000,000 tonnes of magnetite mineralisation being
present however based on current reconnaissance drilling data, it is believed that using 6000 m
total strike length of the two magnetite-rich horizons, a mineralised width of between 25 metres to
40 metres, an initial mining depth of 50 metres and a SG of 4.0, an exploration target tonnage of
between 30-48 million tonnes could initially be present at Victory Bore. If mining were carried out
to a depth of 100 metres, this tonnage might be doubled. If in-fill drilling confirms similar iron
grades, within the identified magnetic anomaly (a total of 11 kilometres) then it is conceivable that
the available in-ground tonnage could be very much larger and may even equate to an exploration
target estimate of 500,000,000 tonnes.
This amount compares very favourably with other deposits in the region; Karara Magnetite 737 Mt
tonnes @ 37.1%Fe, Tallering Peak Hematite(18.6 Mt @ 63.75% Fe), Mt Gibson Hematite (12.8 Mt
@ 61.35% Fe), and Mt Gibson Magnetite 240 Mt @ 46.4 % Fe. The successful mining, treatment
and beneficiation of both high grade, BIF and layered gabbro hosted, haematite/magnetite
mineralization is proven as evidenced by other mining operations in the general area. However, at
this preliminary stage of exploration and in compliance with JORC nomenclature, the mineralization
identified at Victory Bore, at this time, can only be assigned "Exploration Results" status in
accordance with the Valmin Code for Independent Expert reports.