proven reserves, page-7

A reminder....


Iron ore is Flinders Diamonds' jewel

Kevin Andrusiak | The Australian November 23, 2007

FORGET the diamonds, because there's still plenty of room left on the iron ore bandwagon.

Just ask junior South Australian explorer Flinders Diamonds, after the company's share price surged a massive 790 per cent yesterday on the news that it had identified an "iron ore target" of up to 390 million tonnes at its Pilbara tenement - which has a happy coincidence of being right next door to ground held by iron ore aspirant Fortescue Metals Group.

Speculative investors pounced on the stock after the announcement was made following a trading halt, with nearly 2 billion shares traded yesterday.

Flinders said it decided to revisit the potential of its tenement after being spurred on by Fortescue's interest in the area.

Last week, Fortescue announced an inferred resource of 1 billion tonnes-plus on its tenements in what company founder Andrew Forrest said was a Christmas gift to shareholders.

Flinders is also in a joint-venture with Fortescue in a tenement which has an inferred resource of 220 million tonnes grading 56 per cent iron on average. Fortescue has told Flinders that it will pay a royalty of 1 per cent freight on board (FOB) for that iron ore, capped at 8 million tonnes.

Flinders, which had been looking for everything from talc to zinc, said the deposit could be the company-maker it had been looking for. Managing director Kevin Wills - who was part of the team that found the Argyle diamond deposit in the WA Kimberley - said it was still too early to see whether the "iron ore target" would result in mineral resource.

Flinders shares closed 7.9c higher yesterday at 8.9c.