Millways - last paragraph.ASX Release29 September 2006WARDEN...

Millways - last paragraph.

ASX Release
29 September 2006
WARDEN GRANTS CAZALY APPLICATION TO
AMEND OBJECTIONS AND
STAY RIO JV MINING LEASE APPLICATIONS
The Company has been advised that His Honour Warden Calder has made his decision in
relation to the applications by Cazaly Iron Pty Ltd (Cazaly) to:
1. stay the mining lease applications M46/437 to M46/440 by Hamersley Resources
Limited, Han c 0 c k Prospecting Pty Limited and Wright Prospecting Pty Limited (Rio
JV); and
2. amend Cazaly’s objections to the mining lease applications to expand the grounds of
objection.
The Warden has granted both applications.
The grant of the stay means that the mining lease applications by the Rio JV in respect of
the ground containing the Shovellana deposit cannot proceed until the Supreme Court has
determined Cazaly’s application for judicial review of the Minister’s decision to terminate
application E46/678 by Cazaly.
The grant of the amendments to the objections means that at the hearing of the mining
lease applications by the Rio JV, Cazaly will be permitted to lead evidence supporting the
following arguments which Cazaly believes justify the refusal of the mining lease
applications by the Rio JV:
1. Since 1989 the Rio JV has not conducted any significant exploration on E46/209.
2. In the event that the mining lease applications by the Rio JV are granted, the Rio JV
does not intend to conduct any exploration or mining in the foreseeable future.
3. The Rio JV was only able to continue to hold E46/209 by reason of a policy
administered by the Department of Industry & Resources of giving special treatment to
iron ore tenements so as to allow exploration licences authorised for iron ore to be
utilised as holding titles.
4. The policy is inconsistent with the provisions of the Mining Act 1978 (WA) and/or
contrary to the purpose of the Mining Act 1978 (WA).
5. The 11 extensions of terms granted in respect of E46/209 were unlawfully granted
because:
(a) the Rio JV had no intention of conducting further exploration or mining on the
ground the subject of E46/209 in the foreseeable future; and
(b) the extension of term applications did not disclose exceptional circumstances
which could have justified the grant of an extension of term.
6. The Rio JV has already had an adequate opportunity to explore and develop the land
the subject of the Application and, in accordance with the objectives of the Mining Act
1978 (WA), another party should now be given the opportunity.
The company has been advised that the Warden will hand down reasons for his decision on
or before 5 October 2006.
Yours Sincerely,
Nathan McMahon
Managing Director