qty report

Poor old ERN - it is certainly quiet at the moment and seems to be bunkering down for the immediate futore.

Two very small glimmers of hope were contained in the report as follows. Can anyone expand on / throw more light on these comments.

Armour

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The Company is currently investigating alternative screening methods which could potentially upgrade the mineralisation at the Area 1 Prospect to economic levels.

During the December quarter the Company will evaluate all drilling results to date and complete metallurgical
and density separation studies on RC samples from Area 1 to establish whether grades of mineralisation and
tonnages can be improved

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During the quarter Allied Mineral Services in Perth, Australia completed a preliminary heavy mineral analysis of
samples from previous pitting and the auger test programme to determine the valuable heavy mineral (dollar inground
potential) and deleterious mineral content of the heavy mineral suite.
Results indicated that samples with a heavy mineral grade of 10-12% have higher magnetite and hematite levels
than those normally seen in mineral sands deposits and have good potential for an iron ore deposit. There are
however high levels of titanium in the coarse magnetite fraction. Testwork is being undertaken to establish
whether economic quantities of magnetite with low Titanium content can be recovered from the dunes. Although
the deposit typically has low levels of zircon and rutile, the zircon could possibly be recovered as an accessory
mineral during a mining operation. High concentrations of garnet could also be recovered as a marketable
commodity.
Additional electrostatic, mineralogical and metallurgical studies are also being undertaken by Allied Mineral
Services to better understand the economic potential of the heavy minerals present.