Subsequent to the announcement made by Royal Resources Limited (“Royal”) on 13 December 2006 Royal is pleased to announce that it has been successful in a ballot in respect to Exploration Licence Application EL47/1615 located in the Newman region of the East Pilbara. The ballot gives priority to Royal’s application and the process of granting the licence is now underway.
The tenement is located about 40 kilometres to the north east of Newman and covers an area of 208 square kilometres. Geological mapping by the Geological Survey of Western Australia show that the area is underlain by the Hamersley Group and possible prospective iron ore mineralisation associated with the Brookman Iron Formation.
BHP Billiton’s Newman – Port Hedland railway transverses through the eastern boundary of the tenement. The winning of the ballot provides Royal with a significant presence in the Pilbara region. Royal already has three tenements immediately to the west of the Newman townsite and 8 kilometres to the west of the world class Mount Whaleback iron ore mine – the Prairie Downs project shown in the attached location map. A further four tenements are under application to the northwest of Newman.
The Directors of Royal Resources are very excited about the outcome of the ballot and look forward to the opportunity of exploring for iron ore in such a highly prospective area in the Pilbara. ROYAL RESOURCES LIMITED Philip G Crabb DIRECTOR
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