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emerging iron ore players snapshot Emerging iron ore players snapshot (Part one - A)

Wednesday, May 24, 2006

MiningNews.net's emerging iron ore players snapshot continues...



AusQuest Limited

Share price (at May 23): 53c
Market cap (at May 23): $40.89 million

1. Where is your project located?
We have several iron ore projects in the Pilbara of WA. Nameless is located within 5km of Tom Price. Rocklea is 40km west of Tom Price. We have several other prospects between Tom Price and Paraburdoo. Our Sylvania iron prospect is located immediately south of Newman in the east Pilbara.

2. Where is the closest port and what does the company expect to do to get its product there?
The Tom Price prospects are about 300km from the port of Dampier. Agreement with Rio Tinto gives them 60% interest in the Nameless project and first rights over other iron prospects in the Tom Price – Paraburdoo area. The agreement includes access to their infra structure should the project be developed. Sylvania is about 350km from Pt Hedland and 10km south of the town of Newman. This project is at an early stage but access to available infrastructure will be a key to development.

3. Does the project have a resource? If not, what is the potential size of a resource?
Resource figures will only be available after drilling is completed. Drilling at Nameless is about to commence. The channel at Nameless is 15km long and varies in width from 200-600m at surface.
The Sylvania project is at an earlier stage than Nameless but interpretation of remote sensed data infers channel lengths could be greater than 20km.

4. What work has been completed at the project to date?
At Nameless detailed mapping and surface sampling has been completed over the full 15km strike length. Analyses of 56 pisolitic iron samples collected from outcrop returned average grades of 55.1% iron, 5.0% alumina, 5.1% silica and 9.7% LOI with phosphorous values <0.05%. Preparation for drilling including access has been completed.
At Sylvania initial reconnaissance mapping and sampling confirmed the presence of pisolitic iron mineralisation at several sites, although the extent and continuity of the mineralisation could not be evaluated due to extensive alluvial cover over much of the area. Analyses of six surface pisolitic iron samples returned highly encouraging results with iron grades ranging from 55.3% to 58.3%, and silica and alumina averaging 5.7% and 4.3% respectively.

5. What are the broad parameters of a possible development:
Too early to tell.

6. When do you expect to be producing?
Too early to tell.

7. What is the work program for the next 12 months?
At Nameless, approximately 60 RC drill holes are planned on 14 sections 800-1200m apart to test the full strike extent (15km) of the interpreted channel iron mineralisation. Drill holes will be spaced at 100 metre intervals along each traverse. At the completion of this program Rio Tinto can elect under the agreement to commence earning equity and will then fund further work. They have two years to complete an order of magnitude study which includes defining a JORC compliant inferred resource.
At Sylvania and our other iron prospects in the Tom Price-Paraburdoo area we plan to undertake scout drilling to determine potential for further channel iron deposits with follow-up drilling where required.

8. What contractors and consultants has your company used/plans to use?
We are currently using in house geological consultants and plan to continue this practice during the initial drill testing phase. Drillcorp Western Deep Hole are contracted to undertake the drilling. Beyond this, Rio Tinto would take over management of the program if they elect to commence earning equity in the project.

9. Management/board experience in the iron ore sector?
The company's chairman is an ex-director of Hamersley Iron.

10. What is your company's current cash position?
$1.8 million at the end of March 2006.


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